Asiri Holdings

ANNUAL REPORT 2011

Contents

Asiri Hospital Holdings PLC Annual Report 2011

Vision & Mission

Financial Highlights

Corporate Information

Board of Directors

Directors' Profiles

Chairman’s Review

Risk Management

Corporate Governance

Ethics Committee

Remuneration Committee Report

Distribution of Economic Value Added

Annual Report of the Board of Directors

Statement of Directors' Responsibilities

Audit Committee Report

Independent Auditor's Report

Balance Sheet

Income Statement

Statement of Changes in Equity

Cash Flow Statement

Notes to the Financial Statements

Shareholders Information

Six Year Summary

Notice of Meeting

Form of Proxy

02

04

06

07

08

09

11

12

15

16

18

19

21

22

24

25

26

27

28

30

57

59

60

61

VisionTo be a leading healthcare provider in the region through our strengths in wellness and patient care.

MissionTo care for and improve the quality of human life through the provision of ethical clinical care and academic excellence.


02

A friendly and caring service


04

GROUPOperating ResultsRevenueProfit before Interest and TaxProfit after TaxGross Profit Attributable to Equity Holders of the Parent

Balance Sheet HighlightsTotal AssetsTotal Shareholders' FundsDebt to Equity

Shareholder InformationReturn on Total EquityEarnings per ShareNet Asset per SharePrice Earnings Ratio (PE)Market Price as at 31st March

* Note : Adverse variances are indicated within brackets

2011

4,917,092 1,002,698

263,135 190,796

12,397,933 4,822,126

137.7

5 0.21 5.42

41 8.80

2010

3,889,031 935,486 317,298 184,458

11,549,0695,207,664

105.9

6 0.21 5.86

49 10.25

% Change

26%7%

(17%)3%

7%(7%)30%

(10%)0%

(7%)(17%)(14%)

Rs' 000Rs' 000Rs' 000Rs' 000

Rs' 000Rs' 000

%

%RsRs

TimesRs

Financial HighlightsYear Ended 31st March


05

2008

2,544,626 1,185,587

651,172 455,876 138,819

57,525

1.431.95

5,484,696 1,706,162 7,190,858 2,689,724 4,010,997

149.12

5.16 0.081

0.10 3.78 5.83

72.04 711,410

4,143,963

2007

1,706,835 808,098 465,306

77,731 312,733 184,262

5.992.93

2,217,563 299,309

2,516,872 1,597,196

632,418 39.60

19.58 0.259

0.15 2.25 6.50

25.10 711,410

4,624,165

Operating Results

TurnoverGross ProfitProfit before Interest and TaxInterest ExpenseProfit after TaxProfit Attributable to Equity Holders of the ParentInterest CoverDividend Cover

Balance Sheet HighlightsNon Current AssetsCurrent AssetsTotal AssetsShareholders' FundsTotal DebtDebt to Equity

Shareholder InformationReturn on EquityEarnings per ShareDividend per ShareNet Asset per ShareMarket Price per SharePrice Earnings RatioNumber of Issued SharesMarket Capitalization

2009

3,338,907 1,529,182

847,011 610,504 198,130

77,745

1.391.49

7,496,953 719,520

8,216,472 3,278,570 4,348,038

132.62

6.04 0.087

0.15 3.69 5.50

62.91 889,260

4,890,930

2010

3,889,031 1,763,315

935,486 495,578 317,298 184,458

1.894.76

10,805,456 741,434

11,549,069 5,207,664 5,515,025

105.90

6.09 0.208

0.08 5.86

10.25 49.30

889,260 9,114,915

2011

4,917,092 2,241,293 1,002,698

710,526 263,135 190,796

1.412.96

11,572,902 825,031

12,397,933 4,822,126 6,638,053

137.66

5.46 0.215

0.10 5.42 8.80

41.01 889,260

7,825,488

Rs' 000Rs' 000Rs' 000Rs' 000Rs' 000Rs' 000

TimesTimes

Rs' 000Rs' 000Rs' 000Rs' 000Rs' 000

%

%RsRsRsRs

Times000

Rs '000

5.425.86

3.693.782.25

-

10

20

30

40

50

60

70

80

20112010200920082007

Times

Price Earnings RatioNet Asset per Share

0.10

0.08

0.15

0.10

0.15

-

0.05

0.10

0.15

0.20

0.25

0.30

20112010200920082007

Rs

Earnings per ShareDividend per Share

0.2150.208

0.0870.081

0.259

-

2

4

6

8

10

12

20112010200920082007

Rs

Market Price Per ShareEarnings per Share

2.96

4.76

1.491.95

2.93

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

20112010200920082007

Rs

Dividends PaidDividend Cover

4,8225,208

3,279

2,690

1,597

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

20112010200920082007

Rs Mn

Market CapitalizationShareholders' Funds

1.411.89

1.391.43

5.99

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

20112010200920082007

Rs

Interest ExpenseInterest Cover

-

1,000

2,000

3,000

4,000

5,000

6,000

20112010200920082007

Rs '000

Turnover Gross Profit

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Rs Mn

Total Assets Non Current Assets Current Assets

20112010200920082007


06

Corporate Information

NAME OF THE COMPANYAsiri Hospital Holdings PLC

REGISTERED OFFICE#181, Kirula Road, Colombo 5, Sri Lanka.

HOSPITAL COMPLEX & ADMINISTRATIVE OFFICEAsiri Surgical Hospital PLC, # 21, Kirimandala Mawatha, Colombo 5.Sri Lanka. T.P 4524400E-mail: [email protected]

COMPANY REGISTRATION NUMBERPQ 204Previous Number : N (PVS)6920

LEGAL FORMA quoted public company incorporated in Sri Lanka on 29th September 1980, under the Companies Act No.17 of 1982, with limited liability.

Re-registered on 30th September 2008 under the Companies Act No.7 of 2007.

STOCK EXCHANGE LISTINGThe Ordinary Shares of the Company have been listed with the Colombo Stock Exchange of Sri Lanka since June 1986.

SUBSIDIARY COMPANIESAsiri Surgical Hospital PLC# 21 -25, Kirimandala Mawatha, Colombo 5

Asiri Central Hospitals PLC# 37, Horton Place, Colombo 7

Central Hospital (Pvt) Ltd# 114, Norris Canal Road, Colombo 10

Asiri Diagnostics Services (Pvt) Ltd# 21/1, Keppetipola Mawatha, Kandy

Asiri Hospital Kandy (Pvt) Ltd# 21, Kirimandala Mawatha, Colombo 5

Asiri Hospital Matara (Pvt) Ltd# 191, Anagarika Dharmapala Mawatha, Matara

Matara Medi House (Pvt) Ltd#15, Dharmarathna Mawatha, Uyanwatta, Matara

DIRECTORSDr. D. S. Rajapaksa (Chairman)Dr. S. Selliah (Deputy Chairman)Mr. A. K. Pathirage (Managing Director)Dr. K. M. P. Karunaratne (Chief Operating Officer)Mrs. D. Wimalasundera (Director Administration)Mrs. S. D. Nimalasuria (Director Finance)-Resigned w.e.f. 31.05.2011Mr. P. P. SubasingheMr. C. D. Weerasinghe-Expired on 19.12.2010Mr. G. L. H. PremaratneMr. S. A. B. RajapaksaMr. T. M. Wijesinghe

AUDITORSMessrs Amerasekera & Company(Chartered Accountants)# 12, Rotunda Gardens,Colombo 3.

SECRETARIESMessrs Secretaries & Registrars (Pvt) Ltd1st Floor, KPMG Building# 32A, Sir Mohamed Macan Markar Mawatha,Colombo 3.

Board of Directors


07

01. Dr. D. S. Rajapaksa -

02. Dr. S. Selliah - Chairman

03. Mr. A. K. Pathirage - Managing Director

04. Dr. K. M. P. Karunaratne- Director (Medical) / Chief Operating Officer

05. Mrs. D. Wimalasundera - Director Administration

06. Mr. S. A. B. Rajapaksa - Director

07. Mrs. S. D. Nimalasuria - Resigned with effect from 31.05.2011

08. Mr. G. L. H. Premaratne - Director

09. Mr. P. P. Subasinghe - Director

10. Mr. T. M. Wijesinghe - Director

Chairman

Deputy


08

Dr. D. S. Rajapaksa MS, FRCOG (UK)ChairmanDr. Rajapaksa, a Fellow of the Royal College of Obstetricians and Gynaecologists, is currently a consultant in private practice. He was one of the founder directors of Asiri Surgical Hospital PLC and is also a member of the Asiri Central Hospitals Board. Dr. Rajapaksa has over 16 years experience as a Company Director and is also the Chairman of DSI Samson Group of Companies. He serves on the Remuneration Committees and Audit Committees of all three companies. He is also a member of Central Hospital (Pvt) Ltd.

Dr. S. Selliah MBBS, M.Phil (Col)Deputy ChairmanDr. S. Selliah holds a MBBS Degree and a Masters Degree (M.Phil). He has over 19 years of experience in various fields.

Dr. S. Selliah is currently the Deputy Chairman of Asiri Hospital Holdings PLC, and Deputy Chairman of Asiri Surgical Hospital PLC . He is also the Deputy Chairman of Lanka Walltiles PLC and Lanka Tiles PLC. He is also a Director of Horana Plantation PLC, Softlogic Holdings Limited, Parquet (Ceylon) PLC and Expolanka PLC. He is also the Deputy Chairman of Central Hospital Private Ltd.

He also serves on the Remuneration Committees of Asiri Hospital Holdings PLC, Asiri Surgical Hospital PLC, Lanka Walltiles PLC and Lanka Tiles PLC.

He is a member of the Audit Committee of the following listed companies: Lanka Walltiles PLC, Lanka Tiles PLC, Asiri Hospital Holdings PLC and Asiri Surgical Hospital PLC.

In addition to the above companies he also serves as a Director of other unlisted companies.

Mr. Ashok PathirageManaging Director Mr. A. K. Pathirage was appointed to the Board as the Managing Director in July 2006. Mr. Pathirage is the Chairman/Managing Director of the Softlogic Group which is a leading diversified corporate entity in the country and is also the Chairman of Softlogic Finance PLC, Hotel Ceysands, Uniwalkers and its subsidiaries. He is a Director at National Development Bank. He is also the Chairman/Managing Director of Asiri Surgical Hospital PLC, Asiri Central Hospital PLC and Central Hospital (Pvt) Ltd. He is the Managing Director of Asiri Diagnostic Services (Pvt) Ltd., and other subsidiaries of the Asiri Group.

Dr. Manjula KarunaratneMBBS, M.Sc (Trinity, Dublin), MSOrth Med.(Eng)Director (Medical) / Chief Operating OfficerAppointed to the Board of Asiri Hospital Holdings PLC and Asiri Surgical Hospital PLC in 2006. He previously also held the post of Med ica l D i rec to r o f As i r i Hosp i ta l Ho ld ings PLC. A Specialist in Sports / Orthopaedic Medicine, with over 20 years professional experience, he is responsible for the overall medical policy of the Group. He also serves on the Boards of Asiri Central Hospitals PLC, Asiri Hospital Matara (Pvt) Ltd., Matara Medi House (Pvt) Ltd., Asiri Diagnostic Services (Pvt) Ltd., and Central Hospital (Pvt) Ltd.

Mr. P. P. SubasingheMr. Subasinghe has been on the Board of Asiri Hospital Holdings PLC for nearly 21 years. He is a leading figure in the gem industry and has interests in real estate. He is also a Director of Asiri Diagnostic Services (Pvt) Ltd.

Mrs. D. WimalasunderaDirector - AdministrationMrs. Wimalasundera, a senior Board member, has been functioning as an Executive Director for over 20 years. She is a Director of Asiri Surgical Hospital PLC, Asiri Central Hospitals PLC, Asiri Diagnostic Services (Pvt) Ltd., Asiri Hospital Matara (Pvt) Ltd., Matara Medi House (Pvt) Ltd. and Central Hospital (Pvt) Ltd.

Mr. G. L. H. PremaratneDirectorWas appointed to the Board in March 2008 after 40 years of banking experience with Commercial Bank. Mr. Premaratne is specialized in Corporate Banking, and is an Associate of the Institute of Bankers of London. He also serves on the Board of Asiri Surgical Hospital PLC and Central Hospital (Private) Limited.

He functions as the Chairman of the Remuneration Committee and is also a member of the Audit Committee of all three Hospitals. Presently he is the Managing Director of Sampath Bank PLC.

Mr. S. A. B. Rajapaksa MBA, FCA, FCMA, MCIMDirectorMr. Samantha Rajapaksa has more than 20 years of both local and international experience in the finance, venture capital, information technology, consulting and communication sectors. He was appointed to the Board in March 2008 and he also serves on the Board of Asiri Surgical Hospital PLC, Asiri Central Hospitals PLC and Central Hospital (Pvt) Limited. He functions as the Chairman of the Audit Committee of all three Hospitals. He is currently a Director of Softlogic Holdings Limited and also holds the position of Director / Chief Executive Officer of Softlogic Communications (Pvt) Ltd. Mr. Rajapaksa is a Fellow of the Institute of Chartered Accountants of Sri Lanka and of the Chartered Institute of Management Accountants of UK. He is also a Member of the Chartered Institute of Marketing - UK, and holds an MBA from the Institute of Management of the University of Sri Jayawardenapura.

Mr. Thilan Manjith WijesingheMr. Thilan Wijesinghe joined the Board of Directors of Asiri Hospital on 17th March 2010. Mr. Wijesinghe graduated with honours from the State University of New York and Cornell University, USA, with three BSc Degrees in Business Administration, Industrial Engineering and Economics.

Mr. Wijesinghe pursued entrepreneurial interests by co-founding Asia Capital, which became Sri Lanka's largest investment bank in terms of market capitalization. He became the youngest ever and longest-serving head of the BOI. Mr. Wijesinghe co-founded the Sri Lanka Institute of Information Technology (SLIIT), Sri Lanka's largest IT University with over 4,000 students, where he serves to date as a Director. He also has served as CEO in Asian Hotels Corporation, MJF Group, makers of Dilmah Tea and Forbes & Walker Ltd. He briefly functioned as Group Managing Director of Overseas Realty (Ceylon) PLC.

Post Graduate

leisure sector of

Directors' Profiles

Chairman's Review


09

Sri Lanka Economic PerformanceThe economy demonstrated resurgence in 2010, reaching a high of 8% GDP growth after growing at a low 3.9% in 2009. This performance can be attributed mainly to post-war optimism along with strident growth in global markets. Enhanced business confidence and growth in key sectors, such as agriculture and tourism amongst others, provided the much needed boost to growth figures. Single digit inflation, improved lending, tightening of the budget deficit and simplification of the taxation system all added to the positive economic outlook. However, the government will have to address certain developmental challenges to ensure that it can sustain 8% growth through 2011.

Healthcare SectorSri Lanka’s total healthcare expenditure grew in 2010, with foreign investment in health development projects accounting for nearly a third of total health sector investments. Public sector healthcare claims the maximum amount of the healthcare budget, with private sector healthcare institutions also recording increased expansion. However, a fast ageing population requires strategic growth plans to consolidate the gains made by the Sri Lankan economy in order to provide a quality healthcare service.

Group Performance Exceeds Expectations The Asiri Group of Hospitals, which includes Asiri Hospital Holdings PLC, Asiri Surgical Hospital and The Central, have exceeded our financial projections for the period under review to post record profits, with the Gross Profit of the group increasing by 27% to reach Rs. 2.2 Bn.

Gross Profit of Asiri Hospitals grew by 14% to record a strong turnover of Rs.1.66 Bn for the period under review. We are consistently breaking new ground in healthcare services and extending world class medical care backed by the latest technology and equipment in a bid to make healthcare as inclusive as possible for all strata of society.

As the largest private healthcare group in the country, we are in the process of further consolidating the group position through a series of acquisitions and enhancing of facilities in all our hospitals. The Central recorded good revenues within a year of beginning operations, which has further boosted group earnings.

The Asiri Group is committed to making healthcare affordable and accessible islandwide, and has taken on the mantle of bringing healthcare closer to the people by reaching out beyond the lucrative Western Province. Meanwhile, our bid to establish a wider footprint has led us to set up a much-needed pathology laboratory in Jaffna to serve the area with hi-tech healthcare diagnostics expertise. Our newest laboratory will be opened in Batticaloa later this year.

Asiri Hospital Achieves Key MilestonesNow that all of the Asiri Group Hospitals are profit-making ventures, we foresee 2011/12 to be a landmark year in terms of further growth in profitability.

Among our most significant achievements during the year was the acquisition of the 40-bed hospital Matara Medi House (Pvt) Ltd., which has been in operation from 1 April 2010, and the 100-bed hospital , situated in the town of Kandy, which is a pioneer healthcare provider in the hill country.

Medi House is the largest hospital in the Southern Province with a 24-hour Emergency Treatment Unit, Pharmacy, Laboratory, OPD, In-Patient Facilities including Luxury Rooms, ICU, Orthopaedic and General Surgeries, Labour Room, Premature Baby Unit, CT Scanning, X-Ray / ECG / EEG / EMG, Ultrasound Scanning/Echo Scanning, Endoscopy, Dental Surgery, Audiogram / Tympanometry, Physiotherapy / Speech Therapy, Dietary Nutrition Care / Lactation Counselling, Chemotherapy, Vaccination and 24-hour Ambulance Services.

Cementing our technological credentials further, Asiri Laboratory Services was accredited with ISO 15189: 2007 recently by the Sri Lanka Accreditation Board. Prior to this, the lab had already achieved certification for ISO 9001:2008 for its management. This laboratory has progressively developed over the last 27 years to be the leading medical laboratory in Sri Lanka, with satellite laboratories and sample collection centres from Jaffna to Matara and Negombo to Batticaloa. Strict quality control and 100% accuracy levels are maintained on the almost 10,000 reports issued daily.

In our effort to make Asiri Hospital a centre of excellence in healthcare, the hospital acquired an Olympus 680 biochemistry analyzer, the tenth machine in the world, as well as the country’s fastest haemotology analyzer, which is proving to be a boon for dengue afflicted patients.

Increase in ShareholdingMeanwhile, Asiri Hospital Holdings PLC increased its stake in Asiri Surgical Hospital PLC. Asiri Hospital Holdings PLC directly acquired 52,896,600 (10.01%) ordinary shares and 26,188,012 (4.96%) ordinary shares of the company at the Mandatory Offer, which expired on 17th December 2010. The company held 156,140,941 (29.55%) in the previous year.

AcknowledgementI am deeply saddened to announce the demise of Mr. C. D. Weerasingha, a Director of Asiri Hospital, who passed away on 19th December 2010. He made a significant contribution towards the success of the hospital and his reassuring presence will be sorely missed.

AppreciationI would like to thank the Board of Directors for their continued support and guidance and wish to commend the work done by all the medical and non-medical staff of Asiri Hospital in bringing us to this proud juncture in the history of the hospital. Our strong commitment to healthcare services has propelled Asiri Hospital to the forefront of healthcare service providers in the country and our current and future investment in enhancing our service offering will take the healthcare institution miles ahead in the near future.

Dr. D.S. RajapaksaChairman

Asiri Hospital Kandy (Pvt) Ltd.


10

Healthcare with a truly professional touch

Risk Management


11

Risk is associated with any business. The type of risk and the degree to which it affects a particular business varies. Uncertainties provide both risk and opportunity with a potential to erode or enhance the enterprise value. The Board of Directors is mindful of these uncertainties and through the Management at various levels have put in place adequate systems to identify in advance occurrence of such risks and to exercise remedial measures to minimize the impact. Regular reviews are done to ensure that the systems introduced function effectively and the impact, if any, on the performance of the assets of the Company.

Service Quality and Reputation Risk The Company has systems to ensure the provision of a quality service to its patients so that they are satisfied and retained. In today’s world, good reputation has become an organization’s most valuable asset. “Asiri” has developed into a leading household brand name. The Company has recognized the need to protect itself from loss of reputation and against sanctions arising from non-compliance with laws, regulations and ethical standards.

Though adequate insurance cover is available, losses could arise by patients who resort to legal action for professional negligence.

Clinical RiskHospitals retain a significant amount of risk – whether they intend to or not – and clinical risk is usually their largest and most volatile area of exposure. There is no foolproof way to identify risks but the continuum of care tool may assist in thinking systematically about the areas where clinical risk may occur. The Company has taken the following steps to mitigate such risks.�Disclosure of Adverse Patient Outcomes�Defensible Documentation�Emergency Medical Treatment�Guidelines for the Preparation of an Incident Report�Informed Consent�Malpractice Prevention

Operational RiskThe Company has a satisfactory system of internal controls in place to mitigate operational risk. Periodic checks are carried out to ensure that the system of internal controls in place is of the highest quality and also cost effective. Regular reviews are undertaken to ensure that appropriate infrastructure and adequate insurance cover is available to safeguard the Company’s assets and minimize any financial losses.

Credit RiskThe Company admits any patient on placement of a deposit or in an emergency, even without a deposit. Further, it admits patients of corporate clients. There is a risk of a patient not having adequate funds to settle his / her bills at the time of discharge. In order to mitigate such risk, the Company issues interim bills to the patients requesting periodic bill settlement. Further there is a risk of corporate clients' payments being delayed or non-payment of a bill. The Company evaluates credit worthiness of companies before granting credit facilities to corporate clients.

Interest Rate RiskInterest rate risk is the Company’s exposure to adverse movement in interest rates. The Company has obtained multiple facilities from various banks for working capital, capital expenditure and investment at varying terms and conditions.

Compliance with Laws and RegulationsLegal risks are those risks resulting from legal consequences of transactions, with inadequate documentation, legal or regulatory issues and other factors that may result in contracts with counter parties becoming unenforceable causing unexpected financial losses.

In addition to complying with the Colombo Stock Exchange, Securities and Exchange Commission and Companies Act disclosure requirements, the Company also complies with Sri Lanka Accounting Standards.

Technological ObsolescenceThe health industry is a sector where frequent innovations are made. The non-availability of state-of-the-art technology can have an impact on the company’s performance. The Company makes regular investments in cutting-edge technology and staff are trained for optional application of existing technology.

Investment RiskA common uncertainty associated with investments is that they may not provide the desired returns. The Company invests substantial sums in capital expenditure on expansion and providing new services in addition to investments in other companies. Returns on such investments are closely monitored and benefits are periodically evaluated.

Information Security and Loss of DataThe environment that the Company operates is getting more and more computerized. Loss of important data or inability to access systems due to technical failures is another risk that we need to be mindful of. Regular maintenance of equipment, daily backups, off-site storage and round-the-clock IT support are some of the strategies adopted to mitigate such risk. The hospital maintains a lot of confidential data of its patients. Employees are made aware of the importance of the security of such information. The Company has introduced a password policy in this regard.



12

Corporate Governance is the system by which companies are directed, managed and controlled.

The Board manages the Company on behalf of the shareholders and is responsible to the shareholders for creating and delivering sustainable shareholder value through the management of the Group’s business. The Directors exercise their good-faith business judgment with respect to the best interest of the Company.

Board of DirectorsThe Board comprises of three executive Directors and six non-executive Directors. Their profiles appear on page 8 of the Annual Report. The Board of executive Directors generally has a responsibility for making and implementing operational decisions and running the Group’s business. The non-executive Directors support the skills and experience of the executive Directors, contributing to the formulation of policy and decision-making through their knowledge and experience of other business sectors.

Board Meetings and AttendanceThe Board generally meets once a month. Special Board Meetings are also held as and when needed. Scheduled Board Meetings are arranged well in advance to ensure, as far as possible, that Directors can manage their time commitments. All Directors are provided with supporting documents and relevant information for each meeting and are expected to prepare themselves for and to attend all Board Meetings, Shareholders Meetings and all meetings of the committees on which they serve, unless there are exceptional circumstances that prevent them from doing so.

Over the past year the Board held 10 meetings and the attendance is given below.

The Chairman and Managing Director The roles of the Chairman and the Managing Director are separate. The Chairman’s main responsibility is to lead and manage the Board to ensure that it operates effectively and fully discharges its legal and regulatory responsibilities. The Board has delegated the responsibility of the day-to-day management of the Company to the Managing Director, who is responsible for the recommending of strategy to the Board, leading the executive Directors and for making and implementing operational decisions.

Appraisal of the Managing Director The performance of the Managing Director is reviewed every year by the Board. The Managing Director is accountable to the Board and is responsible for the day-to-day operations of the Company while ensuring that corporate goals are achieved making the optimum use of resources available.

Time Commitment The Board dedicates adequate time to discharge their duties effectively. In addition to Board Meetings, they attend sub-committee meetings and make decisions via circular resolutions.

Appointment to the BoardNew appointments to the Board are based on collective decisions of the Board. In making new appointments, the Board considers the composition of the Board in order to assess whether they have the right mix of skills and experience to be better prepared for the managing of the Company. The Board aims to appoint independent non-executive Directors who have the skills and experience needed for a comprehensive understanding of the Group’s activities.

Dr D S Rajapaksa

Dr S Selliah

Mr A K Pathirage

Dr K M P Karunaratne

Mrs D Wimalasundera

Mrs S D Nimalasuria

Mr P P Subasinghe

Mr C D Weerasinghe

Mr G L H Premaratne

Mr S A B Rajapaksa

Mr T M Wijesinghe

I

I

ED

ED

ED

ED

NED

NED

NED

NED

I

(Chairman)

(Deputy Chairman)

(Managing Director)

(Resigned w.e.f. 31st May 2011)

(Expired on 19th December 2010)

8 / 10

9 / 10

10 / 10

10 / 10

9 / 10

8 / 10

9 / 10

2 / 8

9 / 10

9 / 10

6 / 10

Key

ED - Executive Director

I - Independent non-executive Director

NED - Non-executive Director

Re-election of DirectorsAs per the Articles of Association of the Company one third of the Directors shall retire from office at each Annual General Meeting (AGM) and offer themselves for re-election. Any Director appointed during the year can seek re-election at the next AGM. The Managing Director is not subject to retirement by rotation.



13

Independence of the DirectorsMr. T M Wijesinghe, Dr. S Selliah and Dr. D S Rajapaksa function as independent Directors of the Company.

As per the Rules issued by the Colombo Stock Exchange, Mr. T M Wijesinghe meets all the criteria of independence. Dr. S Selliah meets all the criteria of independence except one. Dr. D S Rajapaksa meets all the criteria except two.

Dr. S Selliah and Dr. D S Rajapaksa are also Directors of Asiri Surgical Hospital PLC and Dr. D S Rajapaksa is also a Director of Asiri Central Hospitals PLC in which a majority of other Directors of Asiri Hospital Holdings PLC are employed and Directors.

Dr. D S Rajapaksa was appointed to the Board on 27th June 1995 and has therefore been serving on the Board for more than 9 years.

The Board, having evaluated all the factors, concluded that their independence has not been impaired due to them serving on the Board for more than 9 years and serving on the Boards of other companies in which a majority of other Directors of Asiri Hospital Holdings PLC are employed and/or Directors.

Access to independent professional adviceAll Directors have access to the advice of the Company Secretary and independent professional advice is available to Directors in appropriate circumstances on request at the Company’s expense.

Remuneration of the Directors The remuneration of the Directors is determined by the Board and disclosed on page 51 of the Annual Report.

Company SecretaryMessrs Secretaries & Registrars (Private) Limited acts as the Company Secretary. The role of the Secretary is dealing with Directors at Board Meetings and with shareholders. The Company Secretary attends Board Meetings and ensures that minutes are kept of all proceedings at the Board Meetings. The Company Secretary advises the Board and ensures that proper procedures and applicable rules and regulations are followed by the Board.

Board CommitteesCertain responsibilities of the Board are delegated to Board Committees to assist the Board in carrying out its functions. The two principal Board Committees are:-

Audit CommitteeMr. S A B Rajapaksa - ChairmanDr. D S RajapaksaDr. S SelliahMr. G L H Premaratne

The Audit Committee meets at least four times a year with the Finance Director and the external Auditors to review, inter alia, the Group’s annual and interim financial statements, internal audit, compliance reports and reviews the effectiveness of the Group’s system of internal control. Periodically, it also approves and reviews the appointment and retirement of external Auditors, as well as their relationship with the Group.

Remuneration CommitteeMr. G L H Premaratne - ChairmanDr. D S RajapaksaDr. S Selliah

The Remuneration Committee regularly takes advice from external consultants acknowledged as experts in their fields. The Remuneration Committee usually meets at least twice a year. Its role is to make recommendations to the Board on the following.

�Remuneration policy for executive Directors�Remuneration policy and specific packages for certain senior

executives�Employee benefits and long term incentive schemes

The Group’s remuneration policy is based on the following principles.

�To deliver improved shareholder value by ensuring that individual performance and reward reflect and reinforce the business objectives of the Group

�To support the recruitment, motivation and retention of high quality senior executives

�To ensure that performance is the key factor in determining individual reward

�To communicate the reward structure clearly and effectively to executives and shareholders

The Committee is not responsible for setting the level of remuneration of non-executive Directors, which is determined by the Board.

ResponsibilitiesThe Board and its Committees are supplied with full and timely information to enable them to discharge their responsibilities. It is the responsibility of the Board of Directors to ensure good corporate governance. Good corporate governance requires that the Board must govern the Company with integrity. This includes the following:

�Exercise leadership, enterprise, integrity and in directing the Company so as to achieve continuing prosperity in a manner based on transparency, accountability and responsibility

�Ensure a managed and effective process of Board appointments�Determine the Company’s purpose and values, strategy, and

ensure that procedures and practices are in place�Monitor and evaluate the implementation of strategies and

policies for better management performance

judgement



14

�Ensure compliance with the relevant laws, regulations and codes of best practice

�Communicate with shareholders effectively and serve the legitimate interest of the shareholders

�Periodic and timely reporting to shareholders on the progress and performance of the Company

�Review processes and procedures regularly and ensure that internal control is effective

�Identify key risk areas and ensure that these risks are addressed and managed effectively

�Appoint and evaluate the performance of the Managing Director�Approve the Annual Budget�Authorization of Directors’ conflicts or possible conflicts of interest�Determination of independence of non-executive Directors�Ensure the continuation of the Company as a going concern

Investor Relations The Annual General Meeting, Annual Report of the Company and Quarterly Reports are the principal means of communication with the shareholders.

Compliance with the Corporate Governance Rules of the Colombo Stock Exchange

The following disclosures are made in conformity with Section 7 of the Rules of the Colombo Stock Exchange:

Section Criteria Has the Company met the Criteria

7.10.1

7.10.2

7.10.3

7.10.5

7.10.6

Non-executive Directors

Independent Directors

Disclosures relating to Directors

Remuneration Committee

Audit Committee

Complied with.Out of 9 Directors 6 are non-executive Directors.

Complied with.There are three independent Directors on the Board. Please refer page 13.

Mr. T M Wijesinghe meets all the criteria set out in Rule 7.10.4 for determining the independence of Directors. Dr. S Selliah meets all the criteria except one. Dr. D S Rajapaksa meets all the criteria except two. Please refer page 13.

Complied with.Comprises of three non-executive Directors including two independent Directors.The names of the members of the Committee are given on page 13 of the Annual Report.

Complied with.Comprises of four non-executive Directors including two independent Directors. The report of the Committee is given on page 13.The Group Finance Director attends all the meetings.

Ethics Committee


15

The Ethics Committee of the Asiri Group of Hospitals was constituted to serve as an advisory body on matters relating to conduct of research and clinical trials within the Asiri Group of Hospitals. The Committee is entrusted with the task of accepting proposals for research, conducting scientific and ethics review of such proposals, granting or refusing ethics clearance and monitoring. The Committee has so far reviewed experimental therapy and clinical trial protocols submitted to it by clinicians at Asiri. These include protocols on experimental stem cell therapy for Parkinson's disease and spinal cord transaction; and a phase II trial for rheumatoid arthritis using an anti TNF alpha antibody. The Committee is constituted and operates according to International Committee on Harmonization of Good Clinical Practice Guidelines (ICH-GCP) and is a member of the Forum for Ethics Review Committees in Sri Lanka.

MEMBERS:Prof. Rohan W. Jayasekara (Chairperson)Professor of Anatomy and Director of Human Genetics Unit,Faculty of Medicine, University of Colombo.

Mr. Arittha WickramanayakeAttorney- at-Law, Nithya Partners.

Dr. Malik FernandoMember of Ethics Review Committee of Sri Lanka MedicalAssociation and also Faculty of Medicine, University ofColombo.

Dr. Fred PereraConsultant Neurosurgeon.

Prof. Kemal I. DeenProfessor of Surgery, Department of Surgery, Faculty ofMedicine, University of Kelaniya (Ragama).

Dr. Siva SelliahDeputy Chairman of Asiri Group of Hospitals.

Mrs. Varuni Amunugama FernandoAttorney-at-Law. Co-founder and Joint Managing Director ofTriad (Pvt) Ltd. and their Group of subsidiary companies.

Dr. Indrani AmarasinhaConsultant Surgeon.

Remuneration Committee Report


16

The Remuneration Committee is a sub-committee of the Board constituted under the Company’s corporate governance policies for the purpose of recommending the remuneration of senior management. The members of the Committee comprise of 1 Non-Executive Independent Director and 2 Non-Executive Directors. The names of the Committee members are stated in the Corporate Governance Report on page 13.

The Directors’ emoluments are disclosed on page 51.

The Committee meets biannually. The Committee has acted within the parameters set by its terms of reference.

G.L.H. PremaratneChairman – Remuneration Committee

ColomboMay 12, 2011

Sri Lanka's leading medical laboratory

Distribution of Economic Value Added

Employees

Operating Cost

Government

Capital Providers

Expansion and Growth

19%

44%

6%

16%

15%


18

The creation of wealth is the main purpose of existence of any commercial organization. The value added statement highlights the wealth created by the activities of the company over the last two years and the distribution of this wealth created among its stakeholders.

Through its operation during the financial year 2010/11,the Company created a total wealth of Rs.1.76 billion, which was a 10% increase over the previous year.

Direct Economic Value GeneratedTurnover Finance Income Other Income

Employees Employee Wages & Benefits

Economic Value Distributed Operating Cost

Government Taxes Paid

Capital Providers To lenders as interest To shareholders as dividends

Expansion and Growth DepreciationRetained Earnings

31-Mar-2011Rs. '000

1,666,452 7,115

86,300 1,759,867

338,458

764,799

104,000

176,584 88,926

102,557 184,543

1,759,867

% to Total Value Added

95.2%0.1%4.7%

100.0%

19.9%

44.1%

5.5%

12.3%4.2%

6.7%7.4%

100.0%

31-Mar-2010Rs. '000

1,519,882 1,764

74,461 1,596,107

317,595

703,517

87,978

196,217 66,695

106,335 117,770

1,596,107

% to Total Value Added

95.2%0.1%4.7%

100.0%

19.9%

44.1%

5.5%

12.3%4.2%

6.7%7.4%

100.0%



19

The Directors of Asiri Hospital Holdings PLC have pleasure in presenting to the members their report together with the audited financial statements of the Company and the audited consolidated financial statements of the Group for the year ended 31st March 2011.

Principal Activities and Nature The principal activity of the Company continues to be carrying out Healthcare and Hospital Services.

There has been no significant change in the nature of the Company’s principal activities during the year.

Review of OperationsA review of the operations of the Group and its performance during the year is contained in the Chairman’s Review on page 9 of the Annual Report. This review together with the financial statements reflects the state of affairs of the Company and the Group. These reports form an integral part of the Directors’ Report.

Financial StatementsThe financial statements of the Company and the Group are given on pages 25 to 55.

Auditor’s Report The Auditor’s Report on the financial statements is given on page 24.

Accounting PoliciesThe accounting policies adopted in the preparation of the financial statements are given on pages 30 to 36 There was no change in the accounting policies adopted.

Internal ControlThe Board has overall responsibility for the Company’s system of internal control and reviews its effectiveness. The internal control system has been designed to meet the particular needs of the organization concerned, and the risk to which it is exposed, and by

nature can provide reasonable but not absolute assurance against material mis-statement or loss. The Board is satisfied with the effectiveness of the internal control system for the period up to the date of signature of the accounts.

Directorate The following Directors held Office during the year under review.

Dr. D S Rajapaksa (Chairman)Dr. S Selliah (Deputy Chairman)Mr. A K Pathirage (Managing Director)Dr. K M P KarunaratneMrs. D WimalasunderaMrs. S D NimalasuriaMr. P P SubasingheMr. C D Weerasinghe (Expired on 19th December 2010)Mr. G L H Premaratne Mr. S A B Rajapaksa Mr. T M Wijesinghe

their

It is with a deep sense of regret that the Directors wish to inform the shareholders of the sudden demise of Mr. C D Weerasinghe on 19th December 2010.

In terms of Article 24(6) of the Articles of Association of the Company, Mrs. D Wimalasundera, Mr. G L H Premaratne and Mr. S A B Rajapaksa retire by rotation and, being eligible, offer themselves for re-election.

Directors’ ShareholdingDirectors’ interest in shares of the Company as at 31st March 2011 were as follows.

Name of Director

Dr. D S Rajapaksa

Dr. S Selliah

Mr. A K Pathirage

Dr. K M P Karunaratne

Mrs. D Wimalasundera

Mrs. S D Nimalasuria

Mr. P P Subasinghe

Mr. G L H Premaratne

Mr. S A B Rajapaksa

Mr. T M Wijesinghe

2011

2,238,420

-

368,120

5,201,850

9,748,130

7,180

11,594,280

-

-

-

No. of shares

2010

2,238,420

-

368,120

5,201,850

9,748,130

7,180

11,594,280

-

-

-

Interest RegisterThe Interest Register is maintained by the Company as per the Companies Act No.7 of 2007. All Directors have disclosed their interests pursuant to Section 192(2) of the said Act.

Directors’ interests in contracts and proposed contracts with the Company Directors’ interests in contracts, both direct and indirect, are referred to in note 31 to the financial statements. The Directors have no direct or indirect interest in any other contract or proposed contract with the Company.

Directors’ Remuneration Directors’ remuneration in respect of the Company and the Group for the financial year 2010/2011 is given in note 25 to the financial statements on page 51.

Donations The donations made by the Company during the year amounted to Rs. 301,175 (2009/2010 Rs. 536,403/-).

Auditors The financial statements for the year ended 31st March 2011 had been audited by Messrs Amerasekera & Co.



20

As far as the Directors are aware, the Auditors Messrs Amerasekera & Co. do not have any relationship (other than that of an auditor) with the Company. The Auditors also do not have any interest in the Company or in the subsidiary companies.

DividendsThe Directors recommend to the shareholders that the Interim Dividend of Rs. 0/10 (cents 10) per share paid on 25th May 2010 be considered as the Final Dividend for the year ended 31st March 2011.

Acquisitions The Directors of Asiri Hospital Holdings PLC (AHL) wish to inform the shareholders that AHL acquired the entire issued shares of Asiri Hospital Kandy (Private) Limited (formerly known as Digasiri Medical Services (Private) Limited) on 9th September 2010.

Change of Name of the CompanyThe name of the Company was changed from ‘Asiri Hospitals PLC’ to ‘Asiri Hospital Holdings PLC’ with effect from 10th November 2010.

Mandatory Offer to the shareholders of Asiri Surgical Hospital PLCAsiri Hospital Holdings PLC (the offeror) acquired 26,188,012 (4.96%) ordinary shares of Asiri Surgical Hospital PLC at the Mandatory Offer, which expired on 17th December 2010. The offeror held 209,037,541 (39.56%) before the offer period.

Mandatory Offer by Softlogic Holdings LimitedSoftlogic Holdings Limited (the offeror) acquired 94,028,055 (10.57%) ordinary shares of the Company directly before the Mandatory Offer. At the Mandatory Offer which expired on 1st February 2011, the offeror acquired 41,769,190 (4.70%) ordinary shares of Asiri Hospital Holdings PLC (AHL). The offeror and the parties acting in concert with the offeror held 323,858,475 (36.42%) before the offer period.

Capital ExpenditureThe capital expenditure of the Group and the Company during the year amounted to Rs. 947 Mn & Rs. 69 Mn respectively (2009/2010 – Group - Rs. 3,153 Mn & Company - Rs. 44 Mn), details of which are given in note 3 to the financial statements.

Property, Plant & EquipmentThe movement in property, plant and equipment during the year under review is set out in note 3 to the financial statements.

Stated Capital The stated capital of the Company as at 31st March 2011 was Rs. 1,636,244,012/-. There was no change in the stated capital of the Company during the year under review.

Reserves The total reserves of the Group and the Company as at 31st March 2011 amounted to Rs. 4,822 Mn and Rs. 2,711 Mn respectively. The composition of reserves is shown in the Statement of Changes in Equity in the financial statements.

Shareholders’ InformationThe distribution of shareholders is indicated on pages 57 and 58 in the Annual Report. There were 5,773 registered shareholders as at 31st March 2011.

Share InformationInformation on share trading is given on page 58 of the Annual Report.

Post Balance Sheet EventNo circumstances have arisen and no material events have occurred since the Balance Sheet date, which would require adjustments to, or disclosure in the accounts other than those disclosed in the financial statements and this report.

Statutory PaymentsThe Directors to the best of their knowledge and belief are satisfied that all statutory payments in relation to employees and the government have been made up to date.

Going ConcernThe Board is satisfied that the Company has adequate resources to continue its operations in the foreseeable future and the Directors have adopted the going-concern basis in preparing the accounts.

Annual General MeetingThe 31st Annual General Meeting of the Company will be held at

thHotel Janaki, Fife Road, Colombo 5 on Thursday the 29 day of September 2011 at 12.15 p.m. The Notice of the 31st Annual General Meeting is on page 60 of the Annual Report.

For and on behalf of the Board

Sgd.DIRECTOR

Mr. A.K. Pathirage

Sgd.DIRECTOR

Mrs. D. Wimalasundera

Sgd.SECRETARYSecretaries &

Registrars(Pvt) Ltd.

Date:- 12th May, 2011

Statement of Directors’ Responsibility


21

The responsibility of the Directors, in relation to the financial statements of the Company, differs from the responsibilities of the Auditors, which are set out in the Report of the Auditors on page 24.

The Companies Act No.7 of 2007 stipulates that the Directors are responsible for preparing the Annual Report and the Financial Statements. Company law requires the Directors to prepare Financial Statements for each financial year, giving a true and fair view of the state of affairs of the Company and of the Group at the end of the financial year, and of the profit or loss of the Company and the Group for the financial year, which comply with the requirements of the Companies Act.

In preparing those Financial Statements set out on pages 25 to 55, the Directors are required to:

�Select appropriate accounting policies and maintain them consistently

�Make judgments and estimates that are reasonable and prudent�State whether applicable accounting standards have been

followed, subject to any material departure disclosed and explained in the financial statements

The Directors confirm that they have complied with the above requirements in preparing both the Company Financial Statements and the Consolidated Financial Statements. The Directors also confirm that the Company and the Group have adequate resources to continue in business for the foreseeable future and have applied going concern basis in preparing these Financial Statements.

The Directors are responsible for keeping proper accounting records, which disclose with reasonable accuracy, at any time, the financial position of the Company and the Group and to ensure that the Financial Statements comply with the Companies Act No. 7 of 2007.

They are also responsible for safeguarding the assets of the Company and the Group and for taking reasonable steps for the prevention and detection of fraud and other irregularities. In this regard the Directors have instituted an effective and comprehensive system of internal control.

The Directors are required to prepare Financial Statements and to provide the external Auditors with every opportunity to take whatever steps and undertake whatever inspections they may consider to be appropriate to enable them to give their independent audit opinion.

The Directors are of the view that they have discharged their responsibilities as set out in this statement.

Compliance ReportThe Directors confirm that to the best of their knowledge, all taxes, duties and levies payable by the Company, all contributions, levies and taxes payable on behalf of and in respect of the employees of the Company and other known statutory dues as were due and payable by the Company as at the Balance Sheet date have been paid or, where relevant, provided for, in arriving at the financial results for the year under review.

For and on behalf of the Board

(Sgd.)SECRETARIES & REGISTRARS (PRIVATE) LIMITEDSECRETARIES

ColomboMay 12, 2011

Audit Committee Report


22

The Audit Committee is appointed by the Board of Directors and comprises of two Independent Directors and two Non-Executive Directors. The Names of the Committee members are stated in the Corporate Governance Report on Page 13.

The Audit Committee examines any matters relating to the financial reporting system, the system of internal control over financial reporting, the audit process and the Company’s process for monitoring compliance with laws and regulations. As and when required it requests additional information from the management in order to satisfy itself on the adequacy of the controls in place. The Audit Committee also recommends to the Board the appointment and fees of external Auditors.

The Audit Committee met on four occasions during the year to examine the effectiveness of the Company’s internal control system and the system for monitoring compliance with laws and regulations.

The Audit Committee also reviewed and approved the Annual and Interim Financial Statements prior to the final approval by the Board and also assessed major business and control risks of the Company.

The Audit Committee recommends to the Board of Directors that M/s Ernst & Young be appointed as the Auditors of the Company for the financial year ending 31st March 2012, subject to the approval of the shareholders at the Annual General Meeting.

Samantha RajapaksaChairman – Audit CommitteeAugust 10, 2011

The finest NIC unit, equipped with sophisticated modern technology

Independent Auditors’ ReportTo The Shareholders of Asiri Hospital Holdings PLC

Report on the Financial StatementsWe have audited the accompanying Financial Statements of Asiri Hospital Holdings PLC, and the Consolidated Financial Statements of the Company and its subsidiaries as at 31 March 2011 which comprise the Balance Sheet as at 31 March 2011, and the Income Statement, Statement of Changes in Equity and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory notes as set out on pages 25 to 55.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these Financial Statements in accordance with Sri Lanka Accounting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of Financial Statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Scope of Audit and Basis of OpinionOur responsibility is to express an opinion on these Financial Statements based on our audit. We conducted our audit in accordance with Sri Lanka Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance whether the Financial Statements are free from material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Financial Statements. An audit also includes assessing the accounting policies used and significant estimates made by management, as well as evaluating the overall Financial Statement presentation.

We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. We therefore believe that our audit provides a reasonable basis for our opinion.

OpinionCompanyIn our opinion, so far as appears from our examination, the Company maintained proper accounting records for the year ended 31 March 2011 and the Financial Statements give a true and fair view of the Company’s state of affairs as at 31 March 2011 and its results and cash flows for the year then ended in accordance with Sri Lanka Accounting Standards.

Partners: H. E. Amerasekera FCA T. Dharmarajah B.Sc, FCA Kamantha Amarasekara B.Sc, ACA, Attorney at LawK. Sivanesan B. Com(Special) Hons. ACA, ASCMA K. Sundararaj ACA, S. Sivakumar ACA

Consolidated In our opinion, the Consolidated Financial Statements give a true and fair view of the state of affairs as at 31 March 2011 and the results and for the year then ended, in accordance with Sri Lanka Accounting Standards, of the Company and its subsidiaries dealt with thereby, so far as concerns the shareholders of the Company.

Report on Other Legal and Regulatory RequirementsThese Financial Statements also comply with the requirements of Section 153 (2) to 153 (7) of the Companies Act No.7 of 2007.

CHARTERED ACCOUNTANTSCOLOMBO,

12th May 2011.

Cash Flows

No. 12, Rotunda Gardens,Colombo 3, Sri Lanka.

Tel : 2327595, 2445751, 2321758Fax : 2337385, 2437346, 5355633E-mail: [email protected] (Tax Branch) [email protected] (Audit Branch)


24

Balance SheetAs at March 31, 2011

ASSETSNon - Current AssetsProperty, Plant and EquipmentLeasehold Properties - Rentals Paid in AdvanceIntangible AssetsDeferred Tax AssetsInvestment in SubsidiariesOther InvestmentsInterest Free Loans - Amounts Receivables More than One YearTotal Non - Current Assets

Current AssetsInventoriesTrade and Other ReceivablesInvestments in Short Term Marketable SecuritiesAHL - Employees' Share Trust FundAmounts Due from Related PartiesShort-Term Loans Receivable from Related PartiesIncome Tax Paid in Advance Interest Free Loans - Amounts Receivables Within One YearCash and Cash EquivalentsTotal Current AssetsTotal Assets

EQUITY AND LIABILITIESEquityStated CapitalCapital ReservesRetained Earnings

Minority InterestTotal Equity

Non - Current Liabilities Interest Bearing Loans and Borrowings - Repayable after One YearNon-Interest Bearing Loans and Borrowings - Repayable after One YearDeferred Tax LiabilitiesRetirement Benefit ObligationsOther PayablesTotal Non - Current Liabilities

Current Liabilities Trade and Other PayablesIncome Tax LiabilitiesDividends PayableAmounts Due to Related PartiesInterest Bearing Loans and Borrowings - Repayable within One Year Non-Interest Bearing Liabilities - Repayable within One Year Bank Overdrafts & Short Term BorrowingsTotal Current Liabilities Total Equity and Liabilities

I certify that the Financial Statements of the Company comply with the requirements of the Companies Act No. 07 of 2007.

(Sgd.) Priyal De SilvaGroup Financial Controller

The Board of Directors is Responsible for Preparation and Presentation of these Financial Statements.Approved and Signed for and on behalf of the Board,

(Sgd.) Ashok PathirageManaging Director

Audit Report on Page 24Figures in brackets indicate deductionsThe Accounting Policies and Notes on Pages 30 through 55 form an integral part of these Financial Statements.

(Sgd.) Mrs. D. WimalasunderaDirector Administration

Colombo,May 12, 2011

Note

3456

7.27.3

89

7.41011

11.1

22.1

1213

14.5

151617

1819

20

14.4

1514.3

2011Rs. ‘000

10,726,431 120,348 564,610 101,139

- 1,541

10,333 11,524,402

286,648 433,250

47,500 60,000

- -

749

1,000 44,384

873,531 12,397,933

1,636,244 358,404 735,906

2,730,554 2,091,572 4,822,126

1,895,396

50,561 76,014

170,370 -

2,192,341

593,862 71,578 25,846

84

2,206,419

5,113 2,480,564 5,383,466

12,397,933

2010Rs. ‘000

Re-Stated

10,468,659 125,123 200,961

- -

558

11,334 10,806,635

243,629 277,818

- 60,000

- - -

1,000

159,987 742,434

11,549,069

1,636,244 358,404 635,278

2,629,926 2,577,738 5,207,664

2,093,923

54,633 100,346 117,946

69,519 2,436,367

408,224 98,773 31,449

122

1,711,369

5,113 1,649,988 3,905,038

11,549,069

2011Rs. ‘000

1,139,111 - - -

3,525,217 1,384

- 4,665,712

98,442 152,208

47,500 60,000

216,280 158,400

-

- 11,699

744,529 5,410,242

1,636,244 358,404 716,588

2,711,236 -

2,711,236

594,491

11,000 72,305 97,946

- 775,742

96,256 58,156 24,667

111,484

188,986

- 1,443,715 1,923,264 5,410,242

2010Rs. ‘000

1,175,227 - - -

2,703,851 401

- 3,879,479

87,401 87,444

- 60,000 87,188

- -

- 20,239

342,272 4,221,751

1,636,244 358,404 532,045

2,526,693 -

2,526,693

297,323

11,000 97,319 70,461

- 476,103

84,417 82,177 31,449 48,591

212,943

- 759,378

1,218,955 4,221,751

GROUP COMPANY


25

Income StatementFor The Year Ended March 31, 2011

Revenue

Cost of Services Rendered

Gross Profit

Other Income

Administrative Expenses

Expenses on Private Placement

Distribution Expenses

Finance Cost

Profit Before Taxation

Income Tax Expense

Profit for the Year

Attributable to:Equity Holders of the Parent CompanyMinority Interest

Basic Earnings Per Share (Rs.)

Dividend Per Share (Rs.)



Note

23

24

25

26

27

21

2011Rs. ‘000

4,917,092

(2,675,799)

2,241,293

93,988

(1,312,442)

-

(20,141)

(710,526)

292,172

(29,037)

263,135

190,796 72,339

263,135

0.215

0.100

2010Rs. ‘000

Re-Stated

3,889,031

(2,125,716)

1,763,315

58,451

(822,681)

(40,571)

(23,028)

(495,578)

439,908

(122,610)

317,298

184,458 132,840 317,298

0.210

0.075

2011Rs. ‘000

1,666,452

(888,889)

777,563

93,414

(307,214)

-

(9,711)

(176,584)

377,469

(104,000)

273,469

0.308

0.100

2010Rs. ‘000

1,519,882

(837,211)

682,671

76,225

(282,671)

-

(7,565)

(196,217)

272,443

(87,978)

184,465

0.210

0.075

GROUP COMPANY


26

Statement of Changes in EquityFor The Year Ended March 31, 2011

GROUP

Balance as at April 01, 2009

Profit for the Year

Adjustments Due to Changes in Stake

Dividends Paid - Interim

Dividends Paid by Subsidiaries

Issuance of Shares by Subsidiaries

Balance as at March 31, 2010 (as Previously Reported)

Provision for Gratuity - (Asiri Hospital Matara (Pvt) Ltd)

Investment in Subsidiary - (Asiri Hospital Matara (Pvt) Ltd)

Balance as at March 31, 2010 (Re-stated)

Profit for the Year

Adjustments Due to Changes in Stake


Dividends Paid by Subsidiaries

Balance as at March 31, 2011



COMPANY

Balance as at April 01, 2009

Net Profit for the Year



Net Profit for the Year



Note

21

21

Stated CapitalRs. ‘000

1,636,244

-

-

-

-

-

1,636,244

-

-

1,636,244

-

-

-

-

1,636,244

RevaluationReservesRs. ‘000

358,404

-

-

-

-

-

358,404

-

-

358,404

-

-

-

-

358,404

Retained EarningsRs. ‘000

371,758

184,876

145,757

(66,695)

-

-

635,696

(1,418)

1,000

635,278

190,796

(1,242)

(88,926)

-

735,906

MinorityInterestRs. ‘000

912,164

132,840

(151,334)

-

(33,754)

1,717,822

2,577,738

-

-

2,577,738

72,339

(518,525)

-

(39,980)

2,091,572

Total

Rs. ‘000

3,278,570

317,716

(5,577)

(66,695)

(33,754)

1,717,822

5,208,082

(1,418)

1,000

5,207,664

263,135

(519,767)

(88,926)

(39,980)

4,822,126

Note

21

21

StatedCapitalRs. ‘000

1,636,244

-

-

1,636,244

-

-

1,636,244

RevaluationReservesRs. ‘000

358,404

-

-

358,404

-

-

358,404

RetainedEarningsRs. ‘000

414,275

184,465

(66,695)

532,045

273,469

(88,926)

716,588

MinorityInterestRs. ‘000

-

-

-

-

-

-

-

Total

Rs. ‘000

2,408,923

184,465

(66,695)

2,526,693

273,469

(88,926)

2,711,236


27

Cash Flow StatementFor The Year Ended March 31, 2011

Cash Flow from Operating ActivitiesProfit Before TaxationAdjustments for:DepreciationAmortization of Leasehold Assets(Profit) / Loss on Sale of Property, Plant and EquipmentProvision for Bad DebtsMark to Market Value Adjustment for Short-Term InvestmentsProvision for Retiring GratuityInterest ExpenseImpairment LossIncome from Investments Operating Profit Before Changes in Working Capital

Changes in Working Capital(Increase) / Decrease in Inventories(Increase) / Decrease in Trade and Other Receivables(Increase) / Decrease Amounts Due from Related PartiesIncrease / (Decrease) Amounts Due to Related PartiesIncrease / (Decrease) in Trade and Other PayablesCash Generated from Operations

Interest PaidRetiring Gratuity PaidTaxes PaidNet Cash Generated from Operating Activities

Cash Flow from Investing ActivitiesAcquisition of Property, Plant and EquipmentInvestments in Quoted CompaniesCapital Work-in-ProgressAcquisition of a Subsidiary Short Term Loan Granted to Related CompaniesInvestments in SubsidiariesProceeds from Disposal of Property, Plant and EquipmentInterest ReceivedDividend ReceivedNet Cash Used in Investing Activities

Cash Flow from Financing ActivitiesDividends PaidDividends Paid to Minority by SubsidiariesProceeds from Long Term LoansRepayment of Long Term LoansProceeds from Short Term LoansRepayment of Short Term LoansLease RepaymentsProceeds from Issue of Shares to MinorityInterest Free LoanRepayment of Non-Interest Bearing LiabilitiesNet Cash Flow from / (used in) Financing Activities

Net Change in Cash and Cash Equivalents During the Year

Cash and Cash Equivalents at Beginning of the Year

Cash and Cash Equivalents at End of the Year Note 22

Cash and Cash Equivalents at End of the Year Represent;Cash at Banks & in HandBank Overdrafts



2011Rs. ‘000

292,172

560,636 4,775

(26,714) 1,543 2,027

60,370 710,526

7,802 (18,430)

1,594,705

(43,019) (133,939)

- (38)

185,678 1,603,388

(710,526) (7,789)

(181,703) 703,370

(848,762) (50,510) (95,788) (65,997)

- -

89,914 18,430

- (952,713)

(95,705) (39,980)

1,179,567 (1,711,369)

1,660,000 (991,568)

(25,237) -

1,000 (5,113)

(28,405)

(277,747)

(498,433)

(776,180)

44,384 (820,564) (776,180)

2010Rs. ‘000

Re-Stated

439,908

307,585 4,775

(34) 137 (39)

44,794 495,461

- (16,661)

1,275,926

(31,132) 104,131

- -

83,955 1,432,881

(495,578) (8,035)

(50,611) 878,657

(217,767) (157)

(2,935,486) (179,526)

- -

1,209 16,661

- (3,315,066)

(58,472) (33,754)

1,214,705 (1,359,857)

991,568 - -

1,717,823 1,000

(5,113) 2,467,900

31,491

(529,924)

(498,433)

159,987 (658,420) (498,433)

2011Rs. ‘000

377,469

104,769 - - 7

2,026 32,504

176,584 -

(49,509) 643,850

(11,041) (64,590)

(129,092) 62,893 11,839

513,860

(176,584) (5,019)

(153,035) 179,221

(68,654) (50,510)

- -

(158,400) (821,367)

- 7,114

42,395 (1,049,422)

(95,705) -

490,000 (215,907)

935,000 (250,000)

(1,066) - - -

862,323

(7,877)

(489,139)

(497,016)

11,699 (508,715) (497,016)

2010Rs. ‘000

272,443

108,138 - -

137 (39)

27,549 196,217

- (39,015) 565,431

(401) (21,118)

53,384 43,218

3,652 644,166

(196,217) (3,259)

(12,219) 432,471

(44,279) - - -

(432,408) -

1,764 37,251

(437,672)

(58,473) -

240,000 (532,925)

250,000 -

(588) - - -

(101,986)

(107,187)

(381,952)

(489,139)

20,239 (509,378) (489,139)

GROUP COMPANY


28

State-of-the-art CT Scanning

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. CORPORATE INFORMATION

1.1 Reporting Entity Asiri Hospital Holdings PLC is a public limited liability Company incorporated and domiciled in Sri Lanka. Out of the total issued shares of the Company 44.84% of the shares have a primary listing on the Colombo Stock Exchange. The registered office of the Company and the principal place of business is located at No. 181, Kirula Road, Colombo 5.

The Group consists of the Parent, Asiri Hospital Holdings PLC, and its seven (7) subsidiaries disclosed in Notes 1.4 to the Financial Statements, out of which two (2) subsidiaries are listed on the Colombo Stock Exchange.

1.2 Principal Activities and Nature of Operations of the Group

The principal activity of the group of companies is to provide all healthcare services except that the subsidiary, Asiri Diagnostic Services (Pvt) Ltd only operates a Diagnostic Laboratory in Kandy. There were no significant changes in the nature of principal business operations of the group during the reporting financial period.

1.3 Date of Authorization for Issue The Financial Statements for the year ended 31st March 2011 were authorized for issue in accordance with a resolution of the Board of Directors on 12th May 2011.

1.4 Companies in the GroupThe Group Financial Statements include the results of all subsidiaries and the percentages of ownership of those are disclosed below.

Notes to the Financial StatementsFor The Year Ended March 31, 2011

2.1.2 Going ConcernThe Directors have made an assessment of the company’s ability to continue as a going concern and they do not intend either to liquidate or to cease trading.

2.1.3 Statement of Compliance The Balance Sheet, Statements of Income, Changes in Equity and Cash Flows, together with Accounting Policies and Notes (“Financial Statements”) as at 31st March 2011 and for the year then ended, comply with the Sri Lanka Accounting Standards (SLAS) issued by the Institute of Chartered Accountants of Sri Lanka and the requirements of Companies Act No. 7 of 2007.

2.1.4 Functional and Presentation CurrencyThe functional currency of the Company and each entity of the Group is in Sri Lankan Rupees. All values in these Financial Statements are presented in Sri Lankan Rupees Thousands (Rs '000) unless otherwise indicated.

Financial YearAll companies in the Group have a common financial year which ends on 31st March.

2.1.5 Significant Accounting , Estimates and AssumptionsThe preparation of Consolidated and Company Financial Statements in conformity with SLASs requires management to make , estimates, and assumptions that the application of accounting policies and reported amounts of assets, liabilities, income and expenses and disclosure of contingent liabilities, at the reporting date. However, uncertainty about these assumptions and estimates could result in outcome that require material adjustments to the carrying amounts of assets or liabilities effected in future periods.

The , estimates and underlying assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the , estimates and assumptions about the carrying amount of assets, liabilities and contingent liabilities that are not readily identified from other sources.

The , estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

, estimates and assumptions made by the management in application of SLASs that could have a significant effect on the Financial Statements are mentioned in the next page.

Judgements

the group'sthe

judgementsaffects

ans

judgements

judgements

judgements

Judgements

Asiri Surgical Hospital PLCAsiri Diagnostic Services (Pvt) LtdAsiri Hospital Matara (Pvt) LtdAsiri Central Hospital PLCCentral Hospital (Pvt) LtdMatara Medi House (Pvt) LtdAsiri Hospital Kandy (Pvt) Ltd

- 44.51% (Directly)- 65.54% (Directly)- 100.00% (Directly)- 70.15% (Directly & Indirectly)- 65.15% (Directly & Indirectly)- 100.00% (Indirectly)- 100.00% (Directly)

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 GENERAL ACCOUNTING POLICIES

2.1.1 Basis of Preparation and Measurement These Financial Statements have been prepared mainly based on historical cost and other specific measurements which are explained in the succeeding notes.

No adjustment has been made for inflationary factors affecting the Financial Statements.

Notes to the Financial Statements Continued on Page 31


30

In order to comply with the requirements of these accounting standards, the group is in the process of assessing the impact, the aforesaid two accounting standard will have on the Financial Statements.

Due to the complex nature of the effect of these accounting standards, in impact of adoption is not estimable as at the date of publication of these Financial Statements.

b) Sri Lanka Accounting Standard No. 39 - “Share Based Payment”Sri Lanka Accounting Standards No.39 becomes effective for financial years beginning on or after 1st January 2012. Accordingly, Sri Lanka Accounting Standards No.39 will be adopted in preparing and presenting the Group Financial Statements for the financial years commencing 1st April, 2012.

Sri Lanka Accounting Standards No.39 requires an expense to be recognized where the Group buys good or services in exchange for share or right over shares (equity-settled transactions), or in exchange for other assets equivalent in value to a given number of shares or rights over shares (cash-settled transactions).For equity settled share based payment transactions, the Group is required to apply Sri Lanka Accounting Standards No.39 in issuing shares, share option or other equity instruments that are to be issued after 1st January 2012.

The Group is currently in the process of evaluating the impact, this Accounting Standard will have on Financial Statements, and the impact if the same is not currently estimable as at the date of publication of these Financial Statements.

c) Following the convergence of Sri Lanka Accounting Standards with the International Financial Reporting Standards, the Council of the Institute of Chartered Accountants of Sri Lanka has adopted new set of financial reporting standards that would apply for financial periods beginning on or after 1 January 2012. The application of these financial reporting standards is substantially different to the prevailing standards.

2.1.10 Basis of Consolidation

a) Subsidiaries Subsidiaries are entities over which the Group has the power to govern the financial and operating policies so as to obtain benefits from its activities, which generally accompanies a shareholding of more than one half of the voting rights.

Subsidiaries are consolidated from the date that control commences until the date that control ceases. Adjustments are made to accounting policies of subsidiaries when necessary to align with the policies adopted by the Group. The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is measured as the fair value/net book value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition.

2.1.6 Foreign Currency TransactionsForeign Currency Transactions are translated to Sri Lankan Rupees using the prevalent rate at the time the transaction takes place. Monetary assets and liabilities in foreign currencies are translated at the rate of exchange prevailing at the Balance Sheet date. The resulting gains and losses arising on settlement of monetary items and on the translation of monetary items are accounted for in the Income Statement.

2.1.7 Post Balance Sheet EventsAll material events occurring after the Balance Sheet date have been considered and where necessary adjustments have been made to /or disclosed in the Financial Statements.

2.1.8 Comparative InformationThe Accounting Policies, which have been consistently applied by the Company and the Group, are unless otherwise stated, consistent with those used in the previous years. Previous year’s figures and phrases have been rearranged to confirm to the presentation.

2.1.9 New Accounting Standards Issued but not yet EffectiveThe following standards have been issued by the Institute of Chartered Accountants of Sri Lanka and are effective for the period specified below.

a) Sri Lanka Accounting Standard No.44-“Financial Instruments; Presentation” and Sri Lanka Accounting Standard No. 45 - “Financial Instrument; Recognition and Measurement”

Sri Lanka Accounting Standards No 44 and No 45 becomes effective for financial years beginning on or after 1st January 2012. Accordingly Sri Lanka Accounting Standard 44 and 45 will be adopted in preparing and presenting the group Financial Statements for the financial years commencing 1st April 2012

These two standards together provide comprehensive guidance on identification, classification, measurement and presentation of Financial Instruments (including derivatives) into financial assets, financial liabilities and equity instruments.

Accordingly, when financial assets or liabilities are recognized initially, the group is required to measure such financial assets or liabilities at its fair value, plus transaction costs that are directly attributable to the acquisition or issue of the financial assets, financial liability and subsequently measure either at fair value or amortized cost depending on the categorization of the financial assets and financial liabilities.

Judgments, estimates and assumptionsValuation of Property, Plant & Equipment Impairment of Non-Financial AssetsDeferred Tax AssetsCurrent TaxationRetirement Benefit Obligation – Gratuity

Note Reference2.2.1.42.2.1.72.1.11 (d)2.1.11 (a)2.3.2 (1)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Contd..




31

2.1.11 Taxation

a) Current Income TaxationProvisions for Income Tax are based on the element of Income and Expenditure as reported in the Financial Statements and computed in accordance with the provisions of relevant tax statutes. Income tax liabilities arise to the Company and the Group in accordance with the provisions of the Inland Revenue Act No. 10 of 2006 and amendments thereto. These liabilities are provided for in the Financial Statements applying the said provisions which the management believes reflect actual liability. There can be instances where the stand taken by the company on transaction is contested by the Revenue Authority. Any additional costs on account of these issues are accounted for as a tax expense at the point of liability is confirmed on the company of the Group.

Current tax assets and liabilities for the current year and prior periods are measured at the amounts expected to be recovered from or paid to Revenue Authority. Tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the Balance Sheet date. The provision for current tax is based on the elements of income and expenditure as reported in the Financial Statements.

b) Social Responsibility Levy (SRL)As per the provisions of Finance Act No. 5 of 2005, and amendments thereto, the SRL was introduced with effect from 1 January 2005. SRL is payable at the rate of 1.5% on all taxes and levies chargeable as specified in the First Schedule of the Act.

c) Economic Service ChargeAs per the provisions of the Finance Act No. 11 of 2004, Economic Service Charge (ESC) is payable on the liable turnover at specified rates. ESC paid is deductible from the Company's income tax liability. Any unclaimed amount can be carried forward and set off against the income tax payable for a further five (05) years. However, with regards to the tax free companies ESC has been charged to the Income Statement.

d) Deferred TaxationDeferred tax is recognized using the Balance Sheet method, providing for temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amount used for taxation purposes. Deferred tax is not recognized for the temporary differences arising in the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit, and differences relating to investment subsidiaries to the extent that they probably will not reverse in the foreseeable future. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by reporting date. Deferred tax assets and liabilities are offset if there is a legal enforceable right to set off current tax liabilities and assets, and they relate to income taxes levied by the same tax authorities on the same taxable entity.

Identifiable assets acquired and liabilities & contingent liabilities assumed in a business combination are measured initially at their fair value/net book values at the acquisition date. The excess of the cost of acquisition over the fair value/net book value of the Group's share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value/net book value of the net assets of the subsidiary acquired, the resulting negative goodwill is recognized directly in the Income Statement.

b) Transactions Eliminated on ConsolidationInter-company transactions, balances and unrealized gains on transactions between Group Companies are eliminated. Unrealized gains arising from transactions with Group Companies are eliminated against the investment to the extent of the Group's interest in the investee. Unrealized losses are also eliminated in the same way as unrealized gains, but only to the extent there is no evidence of impairment.

c) Transaction with Minority InterestsMinority interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group and are presented separately in the Consolidated Income Statement and within equity in the Consolidated Balance Sheet, separately from parent shareholders' equity. Transactions with minority interests are accounted for using the parent entity extension approach, whereby on acquisition of minority interests, the difference between the consideration and book value of the share of the net assets acquired is recognized directly in goodwill. Gain or loss on disposal to minority interests is recognized in the Income Statement.

d) Goodwill Arising on ConsolidationGoodwill acquired in a business combination is initially measured at cost being the excess of the cost of the business combination over the group’s interest in the net fair value of the identifiable assets and liabilities. Goodwill is reviewed for impairment, annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired.

For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to groups of cash-generating units that are expected to benefit from the synergies of the combination. Impairment is determined by assessing the recoverable amount of the cash-generating unit to which the goodwill relates. Where the recoverable amount of the cash generating unit is less than the carrying amount, an impairment loss is recognized. The impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets pro-rata to the carrying amount of each asset in the unit.





32

A deferred tax asset is recognized only to the extent that it is probable that future profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that is no longer probable that the related tax benefit will be realized.

2.1.12 Borrowing CostBorrowing costs are recognized as an expense in the period in which they are incurred, except to the extent where borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a substantial period of time to get ready for its intended use or sale, are capitalized as part of the asset.

2.2 OTHER SIGNIFICANT ACCOUNTING POLICIES

2.2.1 Valuation of Assets and their Measurement Bases

2.2.1.1 Inventories Inventories are valued at the lower of costs and net realizable value, after making due allowances for obsolete and slow moving items. Net realizable value is the price at which inventories can be sold in the ordinary course of business less the estimated cost of completion and the estimated cost necessary to make the sale.

The cost incurred in bringing inventories to its present location and conditions are accounted for using the following cost formulae:-

2.2.1.2 Trade and Other ReceivablesTrade receivables are carried out at anticipated realizable value. A provision for impairment of trade receivables is established when there is reasonable evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial re-organization and default payments are considered as indicators that a trade receivable is impaired. When the carrying amount of the asset is reduced, the loss is recognized in the Income statement. When a trade receivable is uncollectible, it is written off against the provision for trade receivable. Subsequent recoveries of amounts previously written off are recognized as other income in the Income Statement.

2.2.1.3 Cash and Cash EquivalentsCash and cash equivalents are defined as cash in hand, demand deposits and short-term highly liquid investments, readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

For the purpose of Cash Flow Statement, cash and cash equivalents consist of cash in hand and deposits in banks net of outstanding bank overdrafts. Investments with short maturities i.e. three months or less from the date of acquisition are also treated as cash equivalents.

2.2.1.4 Property, Plant and EquipmentAll Property, Plant and Equipment are initially stated at cost. Where items of Property, Plant and Equipment are subsequently revalued, the entire class of such assets is revalued. Subsequent to the initial recognition of the asset at cost the revalued Property, Plant and Equipment are carried at revalued amounts less accumulated depreciation thereon and accumulated impairment losses. Where the assets are carried on cost model, such assets are stated at historical cost less accumulated depreciation less accumulated impairment losses.

a) CostThe cost of PPE is the cost of purchase with any incidental expenses incurred in bringing the assets to its working conditions, for its intended use. Expenditure incurred for the purpose of acquiring, extending or improving assets of permanent nature has been treated as capital expenditure.

b) Restoration CostsExpenditure incurred on repairs or maintenance of roperty,

lant and quipment in order to restore or maintain the future economic benefits expected from originally assessed standard of performance, is recognized as an expense when incurred.

c) RevaluationWhen an asset is revalued, any increase in the carrying amount is credited directly to a revaluation surplus unless it reverses a previous revaluation decrease relating to the same asset, which was previously recognized as an expense. In these circumstances the increase is recognized as income to the extent of the previous written down. When an asset’s carrying amount is decreased as a result of a revaluation, the decrease is recognized as an expense unless it reverses a previous increment relating to that asset, in which case it is charged against any related revaluation surplus, to the extent that the decrease does not exceed the amount held in the revaluation surplus in respect of that same asset. Any balance remaining in the revaluation surplus in respect of an asset, is transferred directly to accumulated profits on retirement or disposal of the asset.

d) DepreciationProvision for depreciation is calculated by using a straight-line method on the cost of all Property, Plant and Equipment in order to write off such amounts over the following estimated useful lives by equal installments.

PP E

Pharmaceuticals - At actual cost on first-infirst-out basis

Surgical and Other - At actual cost on first-inConsumables first-out basis

Goods in Transit - At actual cost





33

Leasehold Land - Over 99 Years Buildings on Leasehold Land - Over 50 YearsMedical Equipment - Over 10 YearsOffice Equipment - Over 05 YearsFurniture & Fittings - Over 10 YearsKitchen Equipment - 03 to 10 Years Generator - Over 10 Years Air Conditioners - 04 to 10 Years Housekeeping Equipment - Over 10 Years Plant and Machinery - 02 to 10 Years Motor Vehicle - 04 to 05 Years Tools & Equipment - Over 10 Years Elevators - Over 10 YearsComputers - Over 05 YearsMedical Instruments - Over 10 Years

Depreciation is provided on a pro- rata basis on the assets purchased / disposed of during the year. Depreciation of an asset begins when it is available for use whereas depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale and the date the asset is derecognized.

e) De-recognition An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognizing of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Income Statement in the year the asset is derecognized.

2.2.1.5 Investments

a) Investments in SubsidiariesIn the company’s Financial Statements nvestments in subsidiaries have been accounted for at cost, net of any impairment losses.

b) Other Long Term InvestmentsAll investments, which are held as long term, are initially measured at cost and subsequently stated at the market values. Investments which are held for yield or capital appreciation are classified as long-term investments. All unquoted investments are carried at lower of cost or Director’s valuation, if any. Provision is made for any permanent in value.

c) Short Term Investments Investments that are held for trading purposes are classified as short-term investments. These are marketable securities acquired and held with the intention of re-sale over a short period of time. Such securities are initially recorded at cost on an aggregate in total and subsequently measured at market value. Adjustments for fall in/ increase in the market value are accounted by charging the difference to the Income Statement.

2.2.1.6 Leases

a) Finance Leases – Where the Company is the Lessee Property, Plant and Equipment on finance leases, which effectively transfer to the Company substantially all of the risk and benefits incidental to ownership of the leased

i

diminution

item are capitalized at the inception of the lease at the fair value of the leased Property or, if lower, at the present value of the minimum lease payments. Capitalized leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term, if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term.

b) Operating LeasesLease of assets under which all the risks and benefits of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Income Statement on a straight-line basis over the period of the lease.

2.2.1.7 Impairment of Assets The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.

Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs to sell, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded subsidiaries or other available fair value indicators.

Impairment losses of continuing operations are recognized in the Income Statement in those expense categories consistent with the function of the impaired asset, except for property previously revalued where the revaluation was taken to equity. In this case the impairment is also recognized in equity up to the amount of any previous revaluation.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Group makes an estimate of recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognized. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the Income Statement unless the asset is carried at revalued amount, in which case the reversal is treated as a revaluation increase.





34

Impairment losses recognized in relation to goodwill are not reversed for subsequent increases in its recoverable amount.

2.3 LIABILITIES AND PROVISIONS

2.3.1 Liabilities Liabilities classified as current liabilities in the Balance Sheet are those obligations payable on demand or within one year from the Balance Sheet date. Items classified as non current liabilities are those obligations which expire beyond a period of one year from the Balance Sheet date.

All known liabilities have been accounted for in preparing the Financial Statements and adequate provisions have been made for liabilities which are known to exist.

2.3.2 ProvisionsProvisions are recognized when the company has a present obligation (legal or constructive) as a result of a past event, where it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as an interest expense.

2.3.2 Retirement Benefit Obligations

a) Defined Benefit Plan – Gratuity The cost of defined benefit plans - Gratuity is determined using actuarial valuations. The Group measures the present value of the promised retirement benefits for gratuity, which is a defined benefit plan with the advice of an independent professional actuary at the end of every financial year using the Projected Unit Credit Method (PUC) as required by Sri Lanka Accounting Standards No. 16, Employee Benefits (Revised 2006).

The actuarial valuation involves making assumptions about discount rates, future salary increases and mortality rates. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty. All assumptions are reviewed at each reporting date.

The item is stated under Retirement Benefit Obligations in the Balance Sheet. The liability is not externally funded.

b) Defined Contribution Plan- Employees’ Provident Fund & Employees’ Trust FundEmployees are eligible for Employees' Provident Fund and Employees' Trust Fund Contributions in line with respective statutes and regulations. The Company contributes 12% and 3% of gross emoluments of employees to Employees' Provident Fund and Employees' Trust Fund respectively. Employer’s contribution to the defined contribution plans are recognized as an expense in the Income Statement when incurred.

2.3.3 Interest Bearing Loans and BorrowingsInterest Bearing Loans are recorded at the amount of proceeds received, net of transaction cost if any. All borrowing costs are charged to Income Statement as an expense in the period in which they are incurred.

2.3.4 Contingent Liabilities and Contingent AssetsA contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that can not be measured reliably. The Group does not recognize a contingent liability but discloses its existence in the Financial Statements.

A contingent asset is a possible asset that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company. The company does not recognize contingent assets but discloses its existence where inflows of economic benefits are probable, but not virtually certain.

2.3.5 Trade and Other PayablesTrade and Other Payables are stated at their costs.

2.4 INCOME STATEMENT

2.4.1 Revenue RecognitionRevenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue and associated costs incurred or to be incurred can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable net of trade discounts and sales taxes. The following specific criteria are used for the purpose of recognition of revenue.

a) Rendering of Services Revenue from rendering of services is recognized in the accounting period in which the services are rendered or performed.

b) InterestInterest Income is recognized as the interest accrues unless collectibles is in doubt.

c) OthersOther income is recognized on an accrual basis.





35


2.4.2 Expenditure Recognitiona) Expenses are recognized in the Income Statement on the

basis of a direct association between the cost incurred and the earning of specific items of income. All expenditure incurred in the running of the business and in maintaining the Property, Plant & Equipment in a state of efficiency has been charged to Income Statement in arriving at the profit for the year.

b) For the purpose of presentation of the Income Statement the Directors are of the opinion that nature of expenses method and function of expenses method presents fairly the elements of the Company's performance, and hence such presentation method is adopted.



36

3 Property, Plant and Equipment

Group

3.1 At Cost / ValuationFree Hold AssetsLand & BuildingsPlant & MachineryBuildings on Leasehold LandMedical EquipmentFurniture & Fixtures and EquipmentOffice EquipmentSundry EquipmentKitchen EquipmentTelevisions & Cassette RecorderTools & EquipmentPush CyclesGeneratorsWater PumpsMotor VehiclesComputersAir ConditionersLaundry EquipmentsHouse Keeping EquipmentIT, Electrical & Sports Life EquipmentLinen, Mattresses & General AccessoriesElevatorsTotal Value of Depreciable Assets

In the Course of ConstructionBuilding Work-in-ProgressBuilding Work-in-Progress on Leasehold Land

Lease Hold AssetsMotor VehiclesTotal Gross Carrying Amount

3.2 Depreciation

Free Hold Assets

Land & BuildingsPlant & MachineryBuildings on Leasehold LandMedical EquipmentFurniture & Fixtures and EquipmentOffice EquipmentSundry EquipmentKitchen EquipmentTelevisions & Cassette RecorderTools & EquipmentPush CycleGeneratorWater PumpMotor VehicleComputersAir ConditionersLaundry EquipmentsHouse Keeping EquipmentIT, Electrical & Sports Life EquipmentLinen, Mattresses & General AccessoriesElevators

Lease Hold AssetsMotor VehiclesTotal Depreciation

Figures in brackets indicate deductions* Notes to the Financial Statements Continued on page 38

As At01.04.2010

Rs. ‘000

3,582,159 26,920

934,417 1,806,232

613,892 74,096 37,262 19,303

2,882 57,381

12 39,251

383 47,762 29,022

127,803 8,385

15,681 - -

32,527 7,455,370

4,546,848 -

12,002,218

8,090 12,010,308

Revaluation

Rs. ‘000

- - - - - - - - - - - - - - - - - - - - - -

- - -

- -

Additions /Transfers

Rs. ‘000

3,450,156 -

6,101 1,082,347

708,862 14,201

527 4,086

10 1,416

9 2,895

- 17,701

7,849 7,244

- 309

166,676 11,969

- 5,482,358

95,788 -

5,578,146

- 5,578,146

Acquisitionof

SubsidiariesRs. ‘000

- - - - - - - - - - - - - - - - - - - - - -

- 2,020 2,020

- 2,020

Disposals /Write offs /TransfersRs. ‘000

- (23,698)

- (115,942) (297,195)

(866) - - - - - - -

(14,103) - - - - - - -

(451,804)

- (4,633,596)

- (5,085,400)

- (5,085,400)

As At31.03.2011

Rs. ‘000

7,032,315 3,222

940,518 2,772,637 1,025,559

87,431 37,789 23,389

2,892 58,797

21 42,146

383 51,360 36,871

135,047 8,385

15,990 166,676

11,969 32,527

12,485,924

9,040 2,020

12,496,984

8,090 12,505,073

As At01.04.2010

85,795 24,415 71,763

768,372 369,886

41,512 23,705

9,526 1,367

24,069 7

12,952 273

30,382 14,692 43,376

4,990 1,884

- -

10,599 1,539,565

2,084 1,541,649

Adjustments

- - - -

(5,489) (1,457)

- - - - - - - - - - - - - - -

(6,946)

- (6,946)

Impairmentfor the Year

- 13

- -

7,789 - - - - - - - - - - - - - - - -

7,802

- 7,802

Charge forthe Year

86,058 630

18,746 254,121 108,935

14,387 1,557 2,068

288 5,832

2 4,024

20 8,658 5,640

13,176 839

1,582 24,181

5,213 3,253

559,210

1,426 560,636

Disposals /Write offs /Transfers

- (21,836)

- (57,245)

(234,662) (102)

- - - - - - -

(10,653) - - - - - - -

(324,498)

- (324,498)

As At31.03.2011

171,853 3,222

90,509 965,248 246,459

54,340 25,262 11,594

1,655 29,901

9 16,976

293 28,387 20,332 56,552

5,829 3,466

24,181 5,213

13,852 1,775,133

3,510 1,778,643



37

3.3 Net Book Values

Free Hold Assetsat ValuationLand & Buildingsat CostPlant & MachineryBuildings on Leasehold LandMedical EquipmentFurniture & Fixtures and EquipmentOffice EquipmentSundry EquipmentKitchen EquipmentTelevisions & Cassette RecorderTools & EquipmentPush CycleGeneratorWater PumpMotor VehiclesComputersAir ConditionersLaundry EquipmentsHouse Keeping EquipmentIT, Electrical & Sports Life EquipmentLinen, Mattresses & General AccessoriesElevatorsTotal Value of Depreciable Free Hold AssetsIn the Course of ConstructionBuilding Work-in-ProgressLease Hold AssetsMotor VehiclesTotal Carrying Amount of Property, Plant and Equipment

3.4 During the year, the Group of Companies acquired Property, Plant and Equipment to the aggregate value of Rs 947 Mn (2010 - Rs. 3,637 Mn). Cash payments amounting to Rs 947 Mn (2010 - Rs 3,634 Mn) were made during the year for purchase of Property, Plant & Equipment.

3.5 Assets included in the above table comprises cost of the assets obtained under finance leases, amounting to Rs. Nil (31 March 2010 – Rs 3.4 Mn) and accumulated depreciation amounting to Rs 3.5 Mn (31 March 2010 - Rs 2 Mn)

3.6 Group's Property, Plant and Equipment include fully depreciated assets still in use, the cost of which at 31 March 2011 amounted to Rs 223Mn (31 March 2010 - Rs 202 Mn).

3.7 Revaluation of Free Hold Land and Buildingsa) Land with an extent of 1 Acre & 0.98 Perches and the building (one building) at #181, Kirula Road, Colombo 05 of Asiri Hospital

Holdings PLC have been last revalued on March 31, 2009 to an aggregate value of Rs. 798,000,000/- by Mr. P. B. Kalugalagedara (FIV, MSIZ, IRRV, FRICS), partner of P. B. Kalugalagedara Associates, Chartered Valuation Surveyors & Estate Agents. Resultant surplus on valuation of Rs. 310,341,739/- had been credited to the revaluation reserve account. The valuation has been done on market value basis.

b) Land with an extent of 1 Acre 3 Roots & 10 Perches at #37, Horton Place, Colombo 7 of Asiri Central Hospitals PLC was last revalued on 30th November 2010 by Mr.P.B.Kalugalagedara & Associates. Resultant surplus of such revaluation of Rs. 852,056,000/- were incorporated to the Equity Statement of the subsidiary's Financial Statements. The valuation was made on the basis on market value.

3.8 The carrying amounts of revalued assets of the group that would have been included in the Financial Statements had the assets been carried at cost less depreciation is as follows:

Class of Asset

Free Hold LandBuildings

Net CarryingAmount

2010Rs. '000

836,703 1,387,930 2,224,633

Net CarryingAmount

2011Rs. '000

948,103 4,761,863 5,709,966

CumulativeDepreciation if assets were carried at cost

- 338,218 338,218

Cost

Rs. '000

948,103 5,100,081 6,048,185


As at 31.03.2011

Rs. ‘000

6,860,462

- 850,009

1,807,389 779,100

33,091 12,527 11,795

1,237 28,896

12 25,170

90 22,973 16,539 78,495

2,557 12,524

142,495 6,756

18,675 10,710,791

11,060

4,580 10,726,431

As at 31.03.2010

Rs. ‘000

3,496,364

2,505 862,654

1,037,860 244,006

32,584 13,557

9,777 1,515

33,312 5

26,299 110

17,380 14,330 84,427

3,395 13,797

- -

21,928 5,915,805

4,546,848

6,006 10,468,659



38


3.9 At Cost / Valuation

Free Hold Assets

LandBuildingsMedical EquipmentFurniture & FittingsOffice EquipmentSundry EquipmentKitchen EquipmentTelevisions & Cassette RecorderTools & EquipmentPush CycleGeneratorWater PumpMotor VehiclesComputersAir ConditionersHouse Keeping EquipmentTotal Value of Depreciable Assets

Lease Hold AssetsMotor VehiclesGross Carrying Amount

3.10 Depreciation

Free Hold Assets

BuildingsMedical EquipmentFurniture & FittingsOffice EquipmentSundry EquipmentKitchen EquipmentTelevisions & Cassette RecorderTools & EquipmentPush CycleGeneratorWater PumpMotor VehiclesComputersAir ConditionersHouse Keeping EquipmentTotal Depreciation

Lease Hold AssetsMotor VehiclesTotal Depreciation

As At01.04.2010

Rs. ‘000

401,000 399,367 801,721

39,070 14,947 21,844

6,415 2,105

14,132 12

12,715 244

22,029 21,273 32,597 12,711

1,802,182

2,511 1,804,693

Additions /TransfersRs. ‘000

- 321

48,012 6,661

861 452

1,504 10

- 9

1,826 - -

4,699 4,226

73 68,654

- 68,654

Disposals

Rs. ‘000

- -

(6,135) - - - - - - - - - - - - -

(6,135)

- (6,135)

As At31.03.2011

Rs. ‘000

401,000 399,688 843,598

45,731 15,808 22,296

7,919 2,115

14,132 21

14,541 244

22,029 25,972 36,823 12,784

1,864,701

2,511 1,867,212

Charge forthe YearRs. ‘000

8,325 81,407

4,193 1,239

24 704 210

1,413 2

1,317 7

3,805 3,806 3,486 1,275

111,213

503 111,716

Adjustments

Rs. ‘000

- -

(5,489) (1,457)

- - - - - - - - - - -

(6,946)

- (6,946)

Disposals

Rs. ‘000

- (6,135)

- - - - - - - - - - - - -

(6,135)

- (6,135)

As At31.03.2011

Rs. ‘000

16,596 577,324

29,086 13,099 21,773

4,095 1,383 4,864

9 8,571

244 17,537 15,328 14,727

1,935 726,571

1,530 728,101

As At01.04.2010

Rs. ‘000

8,271 502,052

30,382 13,317 21,749

3,391 1,173 3,451

7 7,254

237 13,732 11,522 11,241

660 628,439

1,027 629,466



39


3.11 Net Book Values

Free Hold Assetsat ValuationLandBuildingsat CostMedical EquipmentFurniture & FittingsOffice EquipmentSundry EquipmentKitchen EquipmentTelevisions & Cassette RecorderTools & EquipmentPush CyclesGeneratorsWater PumpsMotor VehiclesComputersAir ConditionersHouse Keeping EquipmentTotal Value of Depreciable Free Hold AssetsLease Hold AssetsMotor VehiclesTotal Carrying Amount of Property, Plant and Equipment

3.12 During the year, the Company acquired Property, Plant and Equipment to the aggregate value of Rs 69 Mn (2010-Rs 44 Mn). Cash payments amounting to Rs 69 Mn (2010-Rs 44 Mn) were made during the year for purchase of Property, Plant & Equipment.

3.13 Property, Plant and Equipment include fully depreciated assets still in use the cost of which at 31 March 2011 is Rs. 223 Mn (31 March 2010 - Rs 202 Mn).

3.14 The carrying amounts of revalued assets of the group that would have been included in the Financial Statements had the assets been carried at cost less depreciation is as follows :

Class of Asset

Free Hold LandBuildings

2011Rs. ‘000

401,000 383,092

266,274 16,645

2,709 523

3,824 732

9,268 12

5,970 -

4,492 10,644 22,096 10,849

1,138,130

981 1,139,111

2010Rs. ‘000

401,000 391,096

299,669 8,688 1,630

95 3,024

932 10,681

5 5,461

7 8,297 9,751

21,356 12,051

1,173,742

1,484 1,175,227

Net CarryingAmount

2010

29,617 234,206 263,822

Net CarryingAmount

2011

29,617 227,550 257,167

CumulativeDepreciation if assets were carried at cost

- 92,453 92,453

Cost

29,617 320,003 349,620



40

4 Leasehold Properties - Lease Rentals Paid in Advance Balance at Beginning of the YearPurchased / (Transferred) of Lease Rights During the YearAmortization for the YearBalance at End of the Year

4.1 Asiri Surgical Hospital PLC obtained leasehold rights to the land (extent of which 2 Acres 1Root & 11.6 Perches and 3 buildings) situated at No. 21, Kirimandala Mawatha, Colombo 05 for 99 years from the Board of Investment of Sri Lanka by the agreement dated 29 March 2000. Based on the Ruling 11 of Urgent Issues Task Force (UITF) of The Institute of Chartered Accountants of Sri Lanka , it was stated at revalued amounts. As a result of a revision to said ruling, the Company now carries such leasehold rights to land at the values recorded in the Balance Sheet as at the effective date of SLAS 19 - Leases.

4.2 Asiri Hospital Matara (Pvt) Ltd obtained a lease hold rights to a building, situated at a land wth 38.34 Perches at #37, Anagarika Dharmapala Mawatha Matara, for 20 years commencing from October 04, 2006.

5 Intangible Assets Goodwill on Consolidation

Balance at Beginning of the YearAdditions During the YearAdjustment Due to Change in Stake During the YearBalance at End of the Year

Note 5.1

5.1 Acquisition of Subsidiaries During the YearOn 09th September 2010, Asiri Hospital Holdings PLC has acquired entire share capital of Digasiri Medical Services (Pvt) Ltd.

Investment MadeFair Value of Net Assets AcquiredGoodwill on Acquisition

6 Deferred Tax AssetsBalance at Beginning of the YearProvision / (Reversal) During the YearBalance at End of the Year

6.1 Deferred Tax Expense / (Income)Deferred Tax Expense / (Income) arising due toOrigination and reversal of timing DifferencesBenefit Arising from Tax Losses

6.2 Deferred tax assets in the balance sheet is attributable to provision for retirement benefit obligations, carry forward tax losses and accelerated tax depreciation as shown below.

Deferred Tax Liability Relates to Taxable Temporary Differences from

Accelerated Depreciation for Tax Purposes

Deferred Tax Assets Relates to Deductible Temporary Differences fromProvision for Retirement Benefit ObligationCarried Forward Tax Losses

Deferred Tax Asset Net

Note 6.1


2011Rs. ‘000

- - - -

2010Rs. ‘000

- - - -

2011Rs. ‘000

125,123 -

(4,775) 120,348

2010Rs. ‘000

129,898 -

(4,775) 125,123

GROUP COMPANY

2011Rs. ‘000

200,961 34,085

329,564 564,610

2010Rs. ‘000

Re-Stated

201,862 -

(901) 200,961

GROUP

2011Rs. ‘000

65,997 31,912 34,085

2010Rs. ‘000

- - -

GROUP

2011Rs. ‘000

- - -

- - -

2011Rs. ‘000

--

----

2010Rs. ‘000

- - -

- - -

2010Rs. ‘000

--

----

2011Rs. ‘000

- 101,139 101,139

(18,202) 119,341 101,139

2011Rs. ‘000

(24,546) (24,546)

6,344 119,341 125,685 101,139

2010Rs. ‘000

- - -

- - -

2010Rs. ‘000

--

----

GROUP COMPANY



41


6.3 Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax assets and unused tax losses can be utilized

6.4 Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority. Deferred taxation has been computed using current effective tax rates.

7 Investments Investments in SubsidiariesOther InvestmentsInvestments in Short-Term Marketable - Securities

7.1 Movement in the InvestmentBalance at Beginning of the YearInvestment made during the yearMark to Market Value Adjustment (Net)Balance at End of the Year

7.2 Investment in SubsidiariesQuotedAsiri Surgical Hospital PLC

Asiri Central Hospitals PLC

UnquotedAsiri Diagnostics Services (Pvt) LtdAsiri Hospital Matara (Pvt) LtdCentral Hospital (Pvt) Ltd

Total Investments in Subsidiaries

Asiri Hospital Kandy (Pvt) Ltd

7.3 Other InvestmentsQuoted InvestmentsNational Development BankMark to Market Value Adjustment

7.4 Investments in Short Term MarketableSecuritiesQuoted InvestmentsHatton National BankMark to Market Value Adjustment

2011Rs. ‘000

3,525,217 1,385

47,500 3,574,101

2,704,252 871,876 (2,027)

3,574,101

2010Rs. ‘000

2,703,851 401

- 2,704,252

2,271,805 432,447

- 2,704,252

2011Rs. ‘000

- 1,541

47,500 49,041

558 50,510 (2,027) 49,041

2010Rs. ‘000

- 558

- 558

362 157

39 558

GROUP COMPANY

2011Rs. '000

1,006,972 630,000

1,213,447 2,850,419

2,691 260,000 346,109

65,997 674,798

3,525,217

2010Rs. '000

251,603 630,000

1,213,447 2,095,050

2,691

260,000 346,110

- 608,801

2,703,851

No. of Shares

235,225,553 21,000,000

12,413,491

273,221 26,000,000 34,610,940

5

% of Holding

44.51%100.00%

55.59%

66.54%100.00%

10.88%100.00%

COMPANY

Notes

7.27.37.4

Type of Shares

Ordinary SharesPreference Shares

Ordinary Shares

Ordinary SharesOrdinary SharesOrdinary SharesOrdinary Shares

2011Rs. ‘000

401 983

1,384

50,510 (3,010) 47,500

2010Rs. ‘000

401 -

401

-

- -

2011Rs. ‘000

558 983

1,541

50,510 (3,010) 47,500

2010Rs. ‘000

558 -

558

- - -

GROUP COMPANY

No. of Shares

4,068

125,000



42


8 Inventories

Chemical & Test MaterialsPharmaceuticalsSurgicalX-ray ConsumablesFoodstuffStationeryHouse Keeping Kitchen / CanteenMaintenanceDrugsGenetic LabConsumablesSundry

Provision for Obsolete Stocks

9 Trade and Other Receivables Trade ReceivablesProvision for Bad Debts

AdvancesPrepayments and Other Receivables

10 AHL - Employees' Share Trust Fund Balance as at 31 March

Asiri Hospital Holdings PLC Employee Share Trust Fund has been formed with effect from April 01, 2001 by the indenture of the trust dated March 29, 2001.

The permanent employees of the company are eligible to receive distribution of income made by the trust as specified in the indenture of the trust. However, no distribution can be made by way of transferring shares owned by the trust to beneficiaries.

Jacey Trust Services (Pvt) Ltd has been appointed as the trustees of the trust with effect from April 01, 2001.

11 Amounts Due from Related Parties Asiri Hospital Matara (Pvt) LtdCentral Hospital (Pvt) LtdAsiri Central Hospitals PLCMatara Medi House (Pvt) LtdAsiri Hospital Kandy (Pvt) Ltd

11.1 Short Term Loan Balance

Central Hospital (Pvt) Ltd Asiri Central Hospitals PLC

2011Rs. ‘000

58,417 21,198 10,870

801 639

3,969 1,006

- 1,204

- -

338 -

98,442 -

98,442

46,866 (133)

46,733 -

105,475 152,208

60,000

2010Rs. ‘000

54,364 16,743

6,824 781 598

5,229 1,107

- 584

- 463 708

- 87,401

- 87,401

48,250 (422)

47,828 -

39,616 87,444

60,000

2011Rs. ‘000

60,981 48,815 74,336

4,609 880

9,679 1,229

649 1,219

51,374 25,513

1,122 10,110

290,516 (3,868)

286,648

234,217 (4,847)

229,370 11,900

191,980 433,250

60,000

2010Rs. ‘000

81,083 51,472 79,428

2,118 1,222

10,119 1,992

- 584

- 6,510 9,101

- 243,629

- 243,629

144,144 (4,664)

139,480 83,192 55,146

277,818

60,000

GROUP COMPANY

2011Rs. ‘000

101,934 34,778 10,137 32,542 36,889

216,280

2010Rs. ‘000

78,625 -

8,563 - -

87,188

COMPANY

Relationship

Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

2011Rs. ‘000

132,350 26,050

158,400

2010Rs. ‘000

- - -

COMPANY

Interest Rate

AWPLR+1.5%AWPLR+1.5%

Relationship

Subsidiary Subsidiary



43


12 Stated CapitalFully Paid Ordinary SharesAt Beginning of the YearIssues of SharesAt End of the Year

13 Capital Reserves Revaluation ReservesBalance at Beginning of the YearRevaluation for the YearBalance at End of the Year

14 Interest Bearing Loans and Borrowings Finance Leases Note 14.2Bank Overdrafts & Short Term Borrowings Note 14.3Long Term Bank Borrowings

14.1 Movement in Interest Bearing Loans and BorrowingsDuring the YearBalance at Beginning of the YearBorrowings During the YearLoans from Acquisitions of New SubsidiariesRepayments During the YearBalance at End of the Year

14.2 Finance LeasesBalance at Beginning of the YearAdditionsRepaymentsBalance at End of the Year

14.3 Bank Overdrafts & Short Term BorrowingsBank Overdrafts Short Term Borrowings

14.4 Long Term Loans and Borrowings Repayable within One Year

14.5 Long Term Loans and Borrowings Repayable After One Year

Total Interest Bearing Loans and Borrowings

Number of Shares in

000s

889,263 -

889,263

Value of SharesRs. '000

1,636,244 -

1,636,244

Number of Shares in

000s

889,263 -

889,263

Value of Shares Rs. '000

1,636,244 -

1,636,244

2011 2010

COMPANY

2011Rs. ‘000

358,404 -

358,404

615 1,443,715

782,862 2,227,192

1,269,644 1,375,000

- (417,452)

2,227,192

2010Rs. ‘000

358,404 -

358,404

1,316 759,378 508,950

1,269,644

1,313,153 490,000

- (533,510)

1,269,644

2011Rs. ‘000

358,404 -

358,404

7,354 2,480,564 4,094,462 6,582,380

5,455,280 4,488,457

- (3,361,357) 6,582,380

2010Rs. ‘000

358,404 -

358,404

34,769 1,649,988 3,770,523 5,455,280

4,283,179 3,176,268

38,163 (2,042,330) 5,455,280

GROUP COMPANY

2011Rs. ‘000

1,316 -

(701) 615

508,715 935,000

1,443,715

188,986 188,986

594,491 594,491

2,227,192

2010Rs. ‘000

1,901 -

(585) 1,316

509,378 250,000 759,378

212,943 212,943

297,323 297,323

1,269,644

2011Rs. ‘000

10,121 -

(2,768) 7,354

820,564 1,660,000 2,480,564

2,206,419 2,206,419

1,895,396 1,895,396

6,582,380

2010Rs. ‘000

Re-Stated

8,174 36,062 (9,467) 34,769

658,420 991,568

1,649,988

1,711,369 1,711,369

2,093,923 2,093,923

5,455,280

GROUP COMPANY



44

14.6 Security and Repayment Terms of Borrowings

Company Lending Institution

Nature of Facility

2011Rs. '000

2010Rs. '000

Repayment Terms

Asiri Hospital Holdings PLC Bank of Ceylon Long Term 9,375 28,125 48 Monthly Loan 75 Mn Installments

SecurityConcurrent Mortgage Over Land Marked Lot . L, and Called Ambagahawatta together with the Fixed Machinery Bearing Assessment at No .181, Kirula Road, Colombo 5 and Corporate Guarantee by Asiri Surgical Hospital PLC for Rs. 30 Mn.

Asiri Hospital Holdings PLC Commercial Bank Long Term 17,669 - 60 Monthly Loan 20 Mn Installments

SecurityMortgage Bond Over CT Machine at Jaffna Lab.

Asiri Hospital Holdings PLC Hatton National Bank Long Term 123,318 163,326 60 Monthly Loan 200 Mn Installments

SecurityRegistered Primary Floating Mortgage Bond for Rs. 200 Mn Over the Leased Hold Commercial Property at No. 21, Kirimandala Mawatha, Narahenpita, Colombo 5. (Asiri Surgical Hospital PLC Premises)

Asiri Hospital Holdings PLC Commercial Bank Long Term 75,000 112,500 48 Monthly Loan 150 Mn Installments

SecuritySecondary Mortgage Over Property at No. 181, Kirula Road, Colombo 5.

Asiri Hospital Holdings PLC DFCC Bank Long Term 100,000 140,000 36 Monthly Loan 200 Mn Installments

after 1 yearperiod

SecurityAssignment of 134,915,107 Ordinary Shares of Asiri Surgical Hospital PLC held by Asiri Hospital Holdings PLC in favour of DFCC Bank.

Asiri Hospital Holdings PLC Amana Bank Long Term 150,000 - 60 Monthly Loan 150Mn Installments

SecurityCorporate Guarantee of Rs. 150 Mn by Asiri Surgical Hospital PLC

Asiri Hospital Holdings PLC Nations Trust Bank Long Term Loan 137,500 - 60 Monthly 150 Mn Installments


Asiri Hospital Holdings PLC Hatton National Bank Long Term Loan 20,000 - One off 20 Mn payment

after 12 Months


Asiri Hospital Holdings PLC Commercial Bank Long Term Loan 150,000 - 60 Monthly 150 Mn Installments

SecurityConcurrent Mortgage Over Land Marked Lot. L, Land Called Ambagahawatta Bearing Assessment. No. 181, Kirula Road, Colombo 5.

Asiri Hospital Holdings PLC Sampath Bank Short Term Loan 755,000 - One off 755 Mn payment in

December2011

SecurityAssignment of 54,055,762 Shares of Asiri Surgical Hospital PLC in favour of Sampath Bank.




45



Nature of Facility

Repayment Terms

Asiri Hospital Holdings PLC Commercial Bank Short Term Loan 100,000 - One off 100 Mn payment

after 6Months


Asiri Hospital Holdings PLC Hatton National Bank Import Loan 30,000 - One off 30 Mn payment

after 1 Month

SecurityCorporate Guarantee by Asiri Surgical Hospital PLC

Asiri Hospital Holdings PLC NDB Bank Short Term Loan 50,000 - One off 50 Mn payment

after 3Months

SecurityCorporate Guarantee of Rs. 100Mn from Asiri Surgical Hospital PLC

Asiri Surgical Hospital PLC Commercial Bank Rs.300 Mn 135,000 195,000 60 Monthly Installments

SecurityCorporate Guarantee from Asiri Hospital Holdings PLC


SecurityPrimary Mortgage over machinery to be imported


SecurityLeased hold Land and Buildings

Asiri Surgical Hospital PLC Commercial Bank Rs. 100 Mn 73,280 93,390 One offpaymentafter 3 Months

SecuritySecondary Concurrent Mortgage Bond with Hatton National Bank PLC over the leasehold land and buildings of Asiri Surgical Hospital PLC.

Asiri Surgical Hospital PLC Hatton National Rs.175 Mn 79,300 114,100 60 Monthly Bank Installments

SecurityLeased hold Land and Buildings

Asiri Surgical Hospital PLC Hatton National Rs.50 Mn 50,000 50,000 One offBank payment

after 3Months





46

2011Rs. '000

2010Rs. '000


15 Non - Interest Bearing Loans and BorrowingsPayable to the Board of Investment of Sri LankaBorrowings from Related Companies

15.1 Group

Payable to theBoard of Investment of Sri Lanka

On Leasehold LandOn - Relocation

15.2 CompanyAn amount of Rs. 11,000,000/- has been obtained by Asiri Hospital Holdings PLC from its subsidiary Asiri Diagnostics Services(Pvt) Ltd as an interest free loan.



Nature of Facility

Repayment Terms

Asiri Surgical Hospital PLC Nations Trust Rs 36 Mn 15,750 24,750 48 Monthly Bank Installments

SecurityMortgage over Equipment

Asiri Surgical Hospital PLC Pan Asia Banking Corporation PLC Rs.50 Mn 48,608 50,000 One off

paymentafter 3Months


Asiri Surgical Hospital PLC DFCC Bank Rs.200 Mn 138,996 179,664 50 Monthly Installments

Security66,000,000 ordinary shares of Asiri Surgical Hospital PLC held by Asiri Hospital Holdings PLC

Asiri Central Hospitals PLCBank borrowings were obtained to invest in Central Hospital (Pvt) Ltd and are secured by a primary mortgage bond over the Company’s premises, at No. 37, Horton Place, Colombo 7.

Central Hospital (Pvt) LtdSyndicated loan is secured by a primary concurrent mortgage over the Company’s premises at No. 114, Norris Canal Road, Colombo 10 and secondary concurrent mortgage shall be released upon the first repayment of Rs 750,000,000.

Other borrowings are secured by a corporate guarantee of Asiri Hospital Holdings PLC and Asiri Central Hospitals PLC.

Asiri Hospital Matara (Pvt) LtdPrimary mortgage for Rs. 237 Mn over the hospital premises at No. 26, Esplanade road , Uyanwatta, Matara and at No. 15, Dharmarathna Mawatha, Uyanwatta, Matara owned by Matara Medi House (Pvt) Ltd.

2011Rs. ‘000

- 11,000 11,000

2010Rs. ‘000

- 11,000 11,000

2011Rs. ‘000

55,674 -

55,674

2010Rs. ‘000

59,746 -

59,746

GROUP COMPANY

Note 15.1

Note 15.2

2011

Total

Rs. ‘000

54,633 1,041

55,674

2010

Total

Rs. ‘000

58,705 1,041

59,746

2011 Amount

Repayable Within

2-5 Years Rs. ‘000

16,288 -

16,288

2011 Amount

Repayable After

5 Years Rs. ‘000

34,273 -

34,273

2011 Amount

Repayable Within 1 Year

Rs. ‘000

4,072 1,041 5,113



47

2011Rs. '000

2010Rs. '000


15.3 Terms of Repayment - Board of Investment of Sri Lanka

a) An annual sum equivalent to 4% of the total market value of leasehold land (Rs.101,800,000) as at the date of the lease agreement, over a period of 25 years commencing from the financial year 2000/2001 .

b) BOI reserves the right to revise the annual lease rent every 5 years on the basis of an annual increase not greater than the Average Weighted Deposit Rate prevailing at the end of each year as determined by the Central Bank of Sri Lanka or 10%, per annum which ever is lower. Accordingly, BOI has increased the annual lease rent by 10% in the financial year 2009/10 and the resulting finance cost amounting to Rs. 203,600/- has been recognised as an expense in 2010/11.

If BOI exercises same right, at the end of 5 years (i.e. after the financial year of 2013/14) and every 5 years thereafter at the maximum allowed rate of 10%, the Company would have to incur a gross liability of Rs.113,100,004/- including future finance costs of Rs. 8,363,870/-.

Due to the uncertainty of exercising such right, the Company has not accounted for future finance costs pertaining to the above lease which would amount to approximately Rs.570,264/- for the year ended 31 March 2011.

All payments are subject to taxes prevailing at the time of payment.

c) An amount of Rs. 7,288,940/- is payable in seven equal annual installments on account of re-location fees commencing from the financial year 2004/2005.

16 Deferred Tax Liabilities

Balance at Beginning of the YearProvision / (Reversal) During the YearBalance at End of the Year

16.1 Deferred Tax Expense / (Income)Deferred Tax Expense / (Income) arising due toOrigination and reversal of timing DifferencesChanges in Tax Rates or Imposition of New Taxes

16.2 Deferred tax liability in the Balance Sheet is attributable to provision for retirement benefit obligations and accelerated taxdepreciation as shown below.

Deferred Tax Liability Relates to Taxable Temporary DifferencesAccelerated Depreciation for Tax Purposes

Deferred Tax Assets Relates to Deductible Temporary DifferencesProvision for Retirement Benefit Obligation

Deferred Tax Liability Net

2011Rs. ‘000

97,319 (25,014)

72,305

(6,938) (18,076)

(25,014}

2010Rs. ‘000

114,126

(16,807) 97,319

(16,807) -

(16,807)

2011Rs. ‘000

100,346 (24,332) 76,014

(5,329) (19,003)(24,332)

2010Rs. ‘000

115,088 (14,742) 100,346

(14,742) -

(14,742)

GROUP COMPANY

2011Rs. ‘000

99,848 99,848

(27,543)(27,543)

72,305

2010Rs. ‘000

120,356 120,356

(23,037)(23,037)

97,319

2011Rs. ‘000

104,451104,451

(28,438)(28,438)

76,014

2010Rs. ‘000

124,225 124,225

(23,879) (23,879) 100,346

GROUP COMPANY



48


16.3 Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which thedeductible temporary differences and the carry-forward of unused tax assets and unused tax losses can be utilized.

16.4 Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assetsagainst current tax liabilities and when the deferred income taxes relate to the same fiscal authority. Deferred taxation hasbeen computed using current effective tax rates.

16.5 With regard to Asiri Surgical Hospital PLC, Asiri Central Hospitals PLC & Asiri Hospital Matara (Pvt) Ltd, the provisions of theIncome Tax Act is not applicable as per the agreement signed with the BOI stated in the note 26 to the Financial Statements.As a result, no timing differences arise as at the Balance Sheet Date. As such requirement of provisioning of deferred tax doesnot arise.

17 Retirement Benefit Obligations

Balance at Beginning of the YearAcquisition of SubsidiariesCharge / (Reverse) for the Year Interest CostActuarial Gain / (Loss)Benefits Paid Transferred to / (from) Related CompanyBalance at End of the Year

17.1 A separate fund has not been established to accommodate the liability arising on gratuity. Messrs Actuarial & ManagementConsultants (Pvt) Ltd. carried out an actuarial valuation of the above provision on 31 March 2011. Appropriate and compatible assumptions were used in determining the cost of retirement benefits. The principal assumptions used are as follows:

Principal Actuarial AssumptionDiscount Rate 10.5% - 11% p.a. Future Salary Increase Rate 11.5 % p.aStaff Turnover - Up to 50 years - 10%The demographic assumption underlying the valuation are retirement age of 55 years

17.2 During the previous financial year, with the transfer of employees of Asiri Central Hospitals PLC to related companies, terminal benefits were provided for all employees of the company at the rate of one half of the basic or consolidated wage or salary and cost of living and all other allowances for the last month of the financial year, for employees who have completed five years in service to meet the requirements as required by the Gratuity Act. With the transfer of employees the liability so provided was transferred during the current financial year.

18 Trade and Other Payables Trade PayablesAccrued ExpensesContract RetentionOther Payables

19 Income Tax Liabilities Balance at Beginning of the YearDividend Tax PayableProvision for Income Tax During the Year Note 26.1

Payments Made During the YearBalance at the End of the Year

2011Rs. ‘000

70,461 -

10,875 7,751

13,878 (5,019)

- 97,946

2010Rs. ‘000

46,171 -

27,549 - -

(3,259) -

70,461

2011Rs. ‘000

117,946 -

38,741 7,751

13,878 (7,789)

(158) 170,370

2010Rs. ‘000

Re-Stated 78,887

2,295 44,799

- -

(8,035) -

117,946

GROUP COMPANY

2011Rs. ‘000

48,676 18,372

- 29,208 96,256

82,177 -

129,015 211,192

(153,035) 58,156

2010Rs. ‘000

43,642 9,297

- 31,478 84,417

(10,392) 5,391

104,785 99,784

(17,607) 82,177

2011Rs. ‘000

187,153 89,912

142,522 174,275 593,862

98,773 -

154,508 253,281

(181,703) 71,578

2010Rs. ‘000

Re-Stated

160,061 83,718

- 164,445 408,224

6,641 5,391

137,352 149,384 (50,611) 98,773

GROUP COMPANY



49


20 Amounts Due to Related Parties Asiri Surgical Hospital PLCAsiri Diagnostic Services (Pvt) LtdSoftlogic Communication (Pvt) Ltd

RelationshipSubsidiarySubsidiaryMajor Shareholder

21 Dividend Per ShareNo of SharesDividend Declared / PaidDividend Per Share

22 Cash and Cash Equivalents

22.1 Favourable Cash and Cash Equivalents BalanceCash and Bank BalancesInterest Bearing Short Term Deposit

22.2 Unfavourable Cash and Cash Equivalents BalanceBank Overdrafts

Total Cash and Cash Equivalents for thePurposes of Cash Flow Statement

23 Other IncomeDividend IncomeInterest IncomeShare of Profit from Kalubowila CentreShare of Profit from Ragama CentreProfit / (Loss) on Sale of Property, Plant and Equipment Rent IncomeSundryDialog Antenna RentalsMobitel Income AccountGain on Transfer of AssetsParking FeesManagement Fees

2011Rs. ‘000

67,213 44,187

84 111,484

2010Rs. ‘000

40,559 7,910

122 48,591

2011Rs. ‘000

- -

84 84

2010Rs. ‘000

Re-Stated - -

122 122

GROUP COMPANY

2011

889,263 88,926 0.100

2010

889,263 66,695 0.075

COMPANY

2011Rs. ‘000

11,698 1

11,699

(508,715)

(497,016)

2010Rs. ‘000

20,238 1

20,239

(509,378)

(489,139)

2011Rs. ‘000

44,383 1

44,384

(820,564)

(776,180)

2010Rs. ‘000

159,986 1

159,987

(658,420)

(498,433)

GROUP COMPANY

2011Rs. ‘000

42,395 7,114

23,302 14,870

- 872 830

- - -

1,631 2,400

93,414

2010Rs. ‘000

37,251 1,764

17,558 14,338

- 600 640

- - -

1,674 2,400

76,225

2011Rs. ‘000

- 18,430 23,302 14,870 23,894

2,218 4,496 1,607

720 2,820 1,631

- 93,988

2010Rs. ‘000

- 16,661 17,558 14,338

34 600

3,686 - - -

5,574 -

58,451

GROUP COMPANY



50


24 Finance Cost Interest Expense on OverdraftsInterest Expense on Loans & Borrowings Payable to - BanksBank Charges / Debit TaxInterest Expense on LeaseTotal

25 Profit Before Taxation Stated after Charging / (Crediting)Directors' FeesDirectors' Remuneration Audit FeesStaff Costs IncludesSalaries, Wages and Other Related Expenses including the followings - Defined Benefit Plan Costs - Gratuity - Defined Contribution Plan Costs - EPF & ETFDepreciationProvision for ImpairmentAmortisation of Leasehold PropertyCharity & DonationsLegal Fees

26 Income Tax Expense Current Income Tax Provision Deferred Tax Charge / (Reversal)Total Charge to the Income Statement

Note 26.1Note 26.2

26.1 Reconciliation Between Current Tax Expense and the Product of Accounting Profit

Profit Before TaxationExpenses Disallowed for TaxExpenses Allowed for TaxIncome Not Liable for TaxExempt Profit / (Loss)Adjusted Business Profit / (Loss)

Income Tax Provision for the Year @ 35% Income Tax Provision for the Year @ 2% Tax on Inter - Company DividendsSRLOver / (Under) ProvisionIncome Tax for the Year

26.2 Analysis of Deferred Tax Charge / (Reversal) for the Year (Charge) / Reversal of Deferred Tax Assets Note 6.1Charge / (Reversal) of Deferred Tax Liabilities Note 16.1

2011Rs. ‘000

78,652 97,709

- 223

176,584

4,746 9,739

360

396,364 32,504 32,177

104,769 - -

301 2,110

129,015 (25,014) 104,000

377,469 143,706 (88,501) (42,395)

- 390,279

136,598 - -

2,049 (9,632)

129,015

- (25,014) (25,014)

2010Rs. ‘000

84,555 111,364

- 298

196,217

3,451 8,170

385

331,709 27,549 30,011

108,266 - -

536 1,314

104,785 (16,807) 87,978

272,443 144,428 (84,660) (37,251)

- 294,960

103,237 - -

1,548 -

104,785

- (16,807) (16,807)

2011Rs. ‘000

104,712 599,782

565 5,467

710,526

17,973 9,730 2,212

852,007 61,270 69,795

560,636 7,803 4,775 1,209 3,250

154,508 (125,471)

29,037

292,172 308,830

(169,183) (42,395) 111,823 501,247

165,048 594

- 2,485

(13,620) 154,508

(101,139) (24,332)

(125,471)

2010Rs. ‘000

100,783 393,590

117 1,088

495,578

12,791 14,926

1,868

636,997 45,675 51,671

304,898 -

4,775 1,846 3,150

137,352 (14,742) 122,610

Re-Stated 439,908 144,846 (78,325)

(292,470) 61,741

275,699

121,156 13,562

1,085 1,549

- 137,352

- (14,742) (14,742)

GROUP COMPANY



51


26.3 Tax on ProfitsThe Company and all other subsidiaries are liable for income tax at the rate of 35 % except for following.

26.4 Tax Exemptions and Concessionsa) Asiri Surgical Hospital PLC

Pursuant to the agreement dated 1st June 2000 entered into with the Board of Investment under section 17 of the Board of Investment Law the Company is exempt from income tax for the business of operating a two tier hospital and providing healthcare services, for a period of 10 years commencing from 31st March 2004. This exemption expires on 31st March 2014.

b) Asiri Hospital Matara (Pvt) LtdProfits of the Asiri Hospital Matara (Pvt) Ltd, pursuant to the agreement dated May 25, 2007 entered in to with the Board of Investment under section 17 (2 ) of the Board of Investment Law No. 4 of 1978 the ompany is exempt from income tax for the business of providing health care services, for a period of 8 years.

c) Asiri Central Hospitals PLCThe Company was exempted from income tax on operating profit for 7 years commencing from the year in which it makes a taxable profit from any year of assessment not later than 5 years reckoned from the date of commencement of commercial operations, whichever is earlier. Immediately following the aforementioned tax exemption period, the ompany can opt for a concessionary tax period of a further 15 years at a rate of 2% on its turnover which is deemed to be the profit and income of the ompany. The ompany commenced its commercial operations on August 1994 and continuously incurred losses up to the year of assessment 2000/2001. Pursuant the agreement dated September 8, 1992, entered in to by the ompany under the Colombo Economic Commission aw No. 4 of 1978 and as per the Board of Investment letter dated August 30, 1999, tax exemption period of the enterprise commenced from the year of assessment 1999/2000 and ended in the year of assessment 2005/2006 subject to the of all conditions stipulated in clause 10 (vii) of the Board of Investment Agreement.

Subsequent to the expiration of aforesaid tax exemption period, which deemed to the profits and income of the ompany, the ompany opted for the concessionary tax period of 15 years at the rate of 2% on its turnover. The interest income earned and other operating income are taxed at 35% ( 2010 - 35%)

26.5 Deferred Taxationa) The provisions of the Deferred Tax is not applicable to Asiri Surgical Hospital PLC, Asiri Central Hospitals PLC and Asiri Hospital Matara

(Pvt) Ltd as per the above stated agreements signed with the BOI, there are no temporary differences as at the Balance Sheet date. As such requirement for provisioning of Deferred Tax does not arise.

b) No Deferred Tax Asset / Liability is recognized for due to non existence of taxable / deductible temporary differences. Further, no Deferred is recognized for tax losses of the said ompany since it is not probable that taxable profit will be available against which the unused tax losses can be utilized

27 Basic Earnings Per ShareBasic Earnings Per Share is calculated by dividing the net profit for the year attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. The weighted average number of ordinary shares outstanding during the year and the previous year are adjusted for events that have changed the number of ordinary shares outstanding, without a corresponding change in the resources such as a bonus issue.

The following reflects the income and share data used in the Basic Earnings Per Share computations.

the

C

CC C

C Greater L

fulfilment

C C

Tax Asset CAsiri Hospital Kandy (Pvt) Ltd

Net Profit Attributable to Ordinary Shareholders for BasicEarnings Per Share

Number of Ordinary Shares used as the DenominatorWeighted Average Number of Ordinary Shares in issueapplicable to basic Earnings Per Share

Basic Earnings Per Share

2011

273,469

Number

889,263

0.31

2010

184,465

Number

889,263

0.210

2011

190,796

Number

889,263

0.215

2010

184,458

Number

889,263

0.210

GROUP COMPANY



52


28 Commitments and Contingencies

28.1 Capital Expenditure Commitments There were no material commitments outstanding as at 31 March 2011 for future Capital Expenditure. Please refer Post Balance Sheet Events for further details.

CommitmentsFollowing contractual obligations have arisen in respect of work carried out in the constructions

Architectural Fees/Construction Work/ElectricalInstallation/Air Conditioning / Data Voice/Equipment andFurniture / Ancillary roofing and cladding etc...

28.2 Contingencies

28.2.1 Asiri Hospital Holdings PLC has signed Corporate Guarantee Bonds with the following banks securing the bank facilities obtained by Asiri Surgical Hospital PLC

Hongkong & Shanghai Banking Corporation LtdCommercial Bank PLCHatton National Bank PLCNations Trust Bank PLCPan Asia Banking Corporation PLCSeylan Bank PLCSampath Bank PLCBank of Ceylon

2011Rs. Mn.

285 300 150

- 100

25 - -

860

2010Rs. Mn.

285 300 150

- 100

10 - -

845

2011Rs. Mn.

285 580 350 377 100

50 60 30

1,832

2010 Rs. Mn.

285 580 330 180 100

20 175

24 1,694

GROUP COMPANY

The Directors of the Company have signed Corporate Guarantee Bonds with the following banks securing the bank facilities obtained by Central Hospital (Pvt) Ltd

Hatton National Bank PLC

2011Rs. Mn.

500 500

2010Rs. Mn.

500 500

Seylan Bank PLCHatton National Bank PLC

2011Rs. Mn.

3 33 36

2010Rs. Mn.

3 33 36

The Directors of the Company have signed Corporate Guarantee Bonds with the following banks securing the bank facilities obtained by Matara Medi House (Pvt) Ltd

2011

-

2010

-

2011

121,887

2010

546,253

GROUP COMPANY



53


28.2.2 Asiri Surgical Hospital PLC has signed Corporate Guarantee Bonds to the value of Rs. 825 Mn in assisting the Company for its Borrowings.

29 Assets PledgeConcurrent Mortgage bond over Land & Building for overdraft facility of Rs. 100 Mn from Commercial Bank and overdraft facility of Rs. 30 Mn & Term Loan of Rs. 60 Mn obtained from Bank of Ceylon Ltd. Further secondary mortgage bond has been executed for a Term Loan of Rs. 150 Mn & Short term loan of Rs. 100 Mn obtained from Commercial Bank Ltd. Ordinary Shares of Asiri Surgical Hospital (134,915,107) mortgaged to DFCC Bank Ltd for Loan of Rs. 150 Mn, Rs. 200 Mn and for a term loan of Rs 200 Mn obtain by Asiri Surgical Hospital PLC. Assignment of 2,600,000 Shares of Asiri Central Hospitals PLC in favour of Hatton National Bank.

No Assets have been pledged as security for liabilities other than the assets stated in Note 14.6 to these Financial Statements.

30 Events Occurring after the Balance Sheet DateThere have been no material events occurring after the Balance Sheet date that require adjustments to or disclosure in the Financial Statements

31 Related Party DisclosureDetails of significant related party disclosures are as follows:

31.1 Transactions with Key Management PersonnelThe key management personnel of the Company are the members of its Board of Directors and that of its parent .

a) Key Management Personnel Compensation

Short -Term Employee Benefits Post Employee Benefits

31.2 Transactions with Other Related Entities / PartiesOther Related Companies includes Companies of which the parent companies or key management personnel of the Company, their close family members have significant influence and has the control over such Companies.

Name of Directors

Note 1

Note 2

Note 3

Particulars of Transaction

Temporary Finance GrantedTemporary Finance ReceivedTransfer of PPEPayments madeNet Income (collected)/Received by AHLNet sale/(Purchase) of Goods/Services

Payments made Reimbursement of ExpensesSale of Goods/ServicesTemporary Finance Received

Temporary Finance Granted Sale of Goods/ServicesPayments made Staff Related (Income)/ExpensesReimbursement of Expenses

Amounts (paid)/Received (Rs.)

(156,175) 163,425

481 13,096

5,995

(9,337) (10,496)

(5,883) 41,000

(26,050) 134 (33)

3 102

(2,000) 153,198

63,384 364 477

10,297

- 800

27,499

Name of Company

Asiri Surgical Hospital PLC

Asiri Diagnostics Services(Pvt) Ltd

Asiri Central Hospital PLC

Transactions with Asiri Hospital Holdings PLC Transaction with other

Companies Rs. ‘000

2011Rs. ‘000

14,485 Nil

14,485

2010Rs. ‘000

11,621

Nil 11,621

2011Rs. ‘000

47,414 Nil

47,414

2010Rs. ‘000

33,996 Nil

33,996

GROUP COMPANY



54

Figures in brackets indicate deductions

Name of Directors

Note 4

Note 5

Note 6

Note 7

Note 8

Note 8

Dr. D.S. Rajapaksa

Particulars of Transaction

Temporary Finance Granted Settlement of Temporary FinancePayments made Reimbursement of ExpensesStaff Related (Income)/ExpensesSale of Goods/Services

Temporary Finance Granted Payments made Reimbursement of ExpensesStaff Related (Income)/ExpensesSale of Goods/Services

Payments made

Temporary Finance Granted Payments made Transfer of PPEReimbursement of ExpensesStaff Related (Income)/ExpensesNet Income CollectedSale of GoodsInterest Accrued

Purchase of computers & AccessoriesSoftware Development ChargesPurchase of Mobile

Purchase of Electronic Items

Drinking Water / Shoes

Amounts (paid)/Received (Rs.)

(14,750) 1,750

(3,421) 309 (5)

(7,192)

(24,703) (4,801)

110 1

(449)

(36,889)

(132,350) (7,367)

(1,261) (2,648) (7,143)

(14,028) (4,121)

5,471

2,147 131

8,011

1,840

(18,846)

(18,727)

237 9

(102)

(87,925)

134,414

(34,843)

4,708

2,016 455

4,958

2,109

Name of Company

Asiri Hospital Matara (Pvt) Ltd

Matara Medi House (Pvt) Ltd

Central Hospitals (Pvt) Ltd

Softlogic Holdings Ltd &Subsidiaries

Uniwalkers Ltd

D. Samsons & Sons (Pvt) Ltd

Asiri Hospital Kandy (Pvt) Ltd

Transactions with Asiri Hospital Holdings PLC Transaction with other

Companies Rs. ‘000



55

Common DirectorsNote 1: Messrs. A.K. Pathirage, Dr. D. S. Rajapaksa, S.D. Nimalasuria, Dr. S. Selliah, Dr. K.M.P. Karunarathne, D. Wimalasundera,

G.L.H. Premarathna, C.D. Weerasinghe, S.A.B. Rajapaksa

Note 2: Messrs. A.K. Pathirage, P.P.Subasinghe, Dr. K.M.P. Karunarathne, D Wimalasundera

Note 3: Messrs. A.K. Pathirage, Dr. D. S. Rajapaksa, S.D. Nimalasuria, Dr. S. Selliah, Dr. K.M.P. Karunarathne, D. Wimalasundera, C.D. Weerasinghe, S.A.B. Rajapaksa, G.L.H. Premarathna

Note 4: Messrs. A.K. Pathirage, Dr. D. S. Rajapaksa, Dr. S. Selliah, Dr. K.M.P. Karunarathne, D. Wimalasundera.

Note 5: Messrs. A.K. Pathirage, Dr. D. S. Rajapaksa, Dr. S. Selliah, Dr. K.M.P. Karunarathne, D. Wimalasundera

Note 6: Messrs. A.K. Pathirage, Dr. D. S. Rajapaksa, Dr. S. Selliah, Dr. K.M.P. Karunarathne, D. Wimalasundera

Note 7: Messrs. A.K. Pathirage, Dr. D. S. Rajapaksa, Dr. S. Selliah, Dr. K.M.P. Karunarathne, D. Wimalasundera,S.D Nimalasuria, G.L.H. Premarathna, S.A.B. Rajapakse

Note 8: Messrs. A.K. Pathirage, S.A.B. Rajapaksa

Modern laboratory testing systems



57

31st March 2011

0.10 1.12 4.97 8.71

85.10 100.00

32.12 67.88

100.00

99.54 0.46

100.00

1,880 2,225 1,315

296 57

5,773

5,600 173

5,773

5,731 42

5,773

852,818 10,002,897 44,212,535 77,412,320

756,782,480 889,263,050

285,627,797 603,635,253 889,263,050

885,178,070 4,084,980

889,263,050

1,558 2,180 1,309

308 55

5,410

5,258 152

5,410

5,372 38

5,410

760,230 9,786,170

44,575,340 80,032,350

754,108,960 889,263,050

288,770,450 600,492,600 889,263,050

885,306,870 3,956,180

889,263,050

0.09 1.10 5.01 9.00

84.80 100.00

32.47 67.53

100.00

99.56 0.44

100.00

Total HoldingNo ofShareholders

Total Holding%

No ofShareholders

Total Holding Total Holding%

31st March 2010

404,605,450 - -

83,027,800 40,000,000 26,140,890 20,750,000 20,647,160 19,233,030 11,594,280

9,375,000 8,770,090 7,198,580 6,407,610 5,704,120 5,625,000 5,201,850 5,053,970 4,540,510 4,106,220 3,578,900 3,541,720 3,432,370 3,375,000 3,000,000

704,909,550 184,353,500 889,263,050

398,713,610

45.50 - -

9.34 4.50 2.94 2.33 2.32 2.16 1.30 1.05 0.99 0.81 0.72 0.64 0.63 0.58 0.57 0.51 0.46 0.40 0.40 0.39 0.38 0.34

79.27 20.73

100.00

44.84%

180,969,200 138,634,530

95,253,970 81,027,800 60,750,000 26,140,890

- 20,647,160 19,233,030 11,594,280

9,375,000 8,770,090 6,308,180 6,869,410 5,704,120 5,625,000 5,201,850 5,034,370

- -

3,578,900 3,541,720 3,432,370 3,375,000 3,000,000

704,066,870 185,196,180 889,263,050

425,370,280

20.35 15.59 10.71

9.11 6.83 2.94

- 2.32 2.16 1.30 1.05 0.99 0.71 0.77 0.64 0.63 0.58 0.57

- -

0.40 0.40 0.39 0.38 0.34

79.17 20.83

100.00

47.83%

As at31st March 2011

% As at31st March 2010

%

The ordinary shares of the Company are listed in the Colombo Stock Exchange of Sri Lanka. The Audited Financial Statements of the Company for the year ended March 31, 2011 and copies of this annual report have been submitted to The Colombo Stock Exchange.

Distribution of Shareholders

Shareholdings

1 to 1000 shares1001 to 10,000 shares10,001 to 100,000 shares100,001 to 1,000,000 sharesOver 1,000,001 sharesTotal

Composition of ShareholdersIndividualInstitutionalTotal

ResidenceNon-Residence

Softlogic Holdings LtdSri Lanka Insurance Corporation Ltd-Life FundSri Lanka Insurance Corporation Ltd-General FundWaldock Mackenzie Ltd/ Jacy TrustMr. Tissa WeerasingheSoftlogic International (Pvt) LtdMrs. Neetha WeerasinghaDSI Samson Group (Pvt) LtdSoftlogic Trading (Pvt) LtdMr. P P SubasingheMr. C D WeerasingheMrs. D WimalasunderaMr. S C WimalasunderaMr. H B JayasekeraMr. A H WeerasuriyaMs. T T WeerasingheDr. K M P KarunaratneMr. D M RajapaksheMr. B A MahipalaEmployees' Trust Fund BoardTimex GarmentsDr. L D A C LuvisDistilleries Company of Sri Lanka LtdDr. W M S GunawardenaMs. H K Weerasinghe

Shares held by the balance shareholdingsTotal Issue Shares

Public Shareholding

9.75 7.70 8.80

8,045 136,460,805

1,226,708,205

0.2150.100

5.42

11.75 10.25 10.25

1,757 5,436,500

58,936,150

0.2080.075 5.86

2010/11 2009/10



58

Share Trading

Market Price (Rs)Highest (07/07/2010)Lowest (10/08/2010)As at year end (31/03/2011)

No. of TradesNo. of Shares TradedValue of the Shares Traded (Rs)

Earning per Share (Rs)Dividends per Share (Rs)Net Assets per Share (Rs)

Six Year SummaryYear Ended 31st March

Figures in brackets indicate deductions

2008 Rs. '000

2,544,626 (1,359,039)

1,185,587

31,837 (566,252)

651,172

(455,876) 195,296 (56,477) 138,819

(81,294) 57,525

5,284,517 184,660

1,185 14,334

175,952 105,183 454,616 970,411

7,190,858

711,410 924,834

48,062 427,403

- 578,015

2,689,724

64,249 2,232,359

129,894 69,761 62,296

221,667 6,519 5,317

1,709,072 7,190,858

0.081 0.100

3.78 59% 0.4

2007Rs. '000

1,706,835 (898,737)

808,098

17,220 (360,012)

465,306

(77,731) 387,575 (74,842) 312,733

(128,471) 184,262

2,216,331 -

1,232 -

119,756 49,461

109,950 20,142

2,516,872

711,410 -

48,062 441,020

- 396,704

1,597,196

69,565 143,691 124,805

37,038 -

92,388 33,029

5,317 413,844

2,516,872

0.259 0.150

2.25 26% 6.0

2006Rs. '000

1,291,754 (716,806)

574,948

3,107 (290,972)

287,083

(43,857) 243,226 (33,127) 210,099

(85,131) 124,968

2,077,348 -

994 -

101,034 26,999 84,143

7,108 2,297,626

663,984 -

95,489 363,469

- 335,965

1,458,907

75,086 97,874

112,542 26,241

-

64,546 18,424

7,196 436,810

2,297,626

0.176 0.117

2.05 27% 6.5

2009 Rs. '000

3,338,907

(1,809,725) 1,529,182

54,228 (736,399)

847,011

(610,504) 236,507 (38,377) 198,130

(120,385) 77,745

7,283,573 199,684

362 13,333

207,152 102,613 328,055

81,700 8,216,472

1,636,244 -

358,404 371,758

- 912,164

3,278,570

59,746 3,074,698

115,087 78,887 98,626

267,397 29,867

5,113 1,208,481 8,216,472

0.087 0.150

3.69 57% 0.4

2010 Rs. '000

3,889,031

(2,125,716) 1,763,315

58,451 (886,280)

935,486

(495,578) 439,908

(122,610) 317,298

(132,840) 184,458

10,593,782 198,783

558 12,333

243,629 139,480 200,517 159,987

11,549,069

1,636,244 -

358,404 635,278

- 2,577,738 5,207,664

54,633 2,093,923

100,346 117,946

69,519

408,224 130,345

5,113 3,361,356

11,549,069

0.208 0.075

5.86 51% 0.9

2011 Rs. '000

4,917,092

(2,675,799) 2,241,293

93,988 (1,332,583)

1,002,698

(710,526) 292,172 (29,037) 263,135

(72,339) 190,796

10,846,779 665,749

49,041 11,333

286,648 229,370 264,629

44,384 12,397,933

1,636,244 -

358,404 735,906

- 2,091,572 4,822,126

50,561 1,895,396

76,014 170,370

-

593,862 97,508

5,113 4,686,983

12,397,933

0.215 0.100

5.42 58% 0.4


59

RevenueCost of SalesGross Operating Profit

Other IncomeAdministration and Distribution ExpensesProfit Before Interest and Tax

Finance ExpensesProfit before TaxIncome TaxProfit After Tax

Minority InterestProfit after Minority Interest & Tax

Property, Plant & EquipmentIntangible AssetsInvestmentsInterest-free Loans

InventoriesTrade DebtorsOther Current AssetsCash and Bank BalanceTotal Assets

Issued Share CapitalShare ApplicationReservesRetained EarningsDividend ProposedMinority InterestShareholders' Funds

Non Interest Bearing Long Term LiabilitiesInterest Bearing Long Term LiabilitiesDeferred TaxDeferred LiabilitiesOther Payables - Non Current

Trade CreditorsOther PayablesNon Interest Bearing Loans and BorrowingsInterest Bearing Borrowings & Bank Overdraft

Earnings per Share RsDividends per Share RsNet Assets per Share RsGearing Ratio %Interest Cover Times

Notice of Meeting


60

NOTICE IS HEREBY GIVEN that the Thirty First Annual General Meeting of Asiri Hospital Holdings PLC will be held at Hotel Janaki,

thFife Road, Colombo 5 on Thursday the 29 day of September 2011 at 12.15 p.m. for the following purposes:

1) To receive and consider the Annual Report of the Boardof Directors, Statements of Accounts and the BalanceSheet of the Company for the year ended 31st March2011 together with the Report of the Auditors thereon.

2) To ratify the Interim Dividend of Rs. 0/10 per share paidon 25th May 2010 as the Final Dividend for the yearended 31st March 2011.

3) To re-elect Mrs. D Wimalasundera who retires byrotation in terms of Article 24(6) of the Articles ofAssociation, as a Director of the Company.

4) To re-elect Mr. G L H Premaratne who retires by rotationin terms of Article 24(6) of the Articles of Association, asa Director of the Company.

5) To re-elect Mr. S A B Rajapaksa who retires by rotation interms of Article 24(6) of the Articles of Association, as a Director of the Company.

6) To appoint Messrs Ernst & Young as Auditors of the Company for the ensuing year and to authorize the Directorsto fix their remuneration.

7) Special Business

1. To authorize the Directors to determine and make donations for the year ending 31st March 2012 and up to the date of the next Annual General Meeting.

By Order of the BoardSECRETARIES & REGISTRARS (PRIVATE) LIMITED

(Sgd.)SECRETARIES

ColomboAugust 25, 2011

Note:A member entitled to attend and vote at the Meeting is entitled to appoint a Proxy who need not be a member, to attend instead of him/her.

A form of Proxy is enclosed in this Report.

The completed form of Proxy should be deposited at the Registered Office of the Company, No. 181, Kirula Road, Colombo 5, not less than 48 hours before the time for holding the Meeting.

IMPORTANT NOTICE FOR SHAREHOLDERS

PLEASE NOTE THAT THE SHAREHOLDERS IN POSSESSION OF SHARE CERTIFICATE/S [I.E. SHAREHOLDERS WHOSE SHARES ARE NOT LODGED WITH THE CENTRAL DEPOSITORY SYSTEMS (PRIVATE) LIMITED (CDS)] ARE KINDLY REQUESTED TO LODGE THEIR SHARE CERTIFICATES WITH THE CDS

STBEFORE 31 OF DECEMBER 2011 AS PER THE CIRCULAR NO. 13/2010 ISSUED BY THE CDS.

Form of Proxy


61

*I/We ……………………………………………………………………………………………………………………………………….. of

……………………………………………………………………………………………………………… being* a member/ members of ASIRI

HOSPITAL HOLDINGS PLC, do hereby appoint …………………………………………………. ………………………………………………… of

……………………………………………………………… or failing *him/her

Dr. D S Rajapaksa of Colombo or failing himDr. S Selliah of Colombo or failing himMr. A K Pathirage of Colombo or failing himDr. K M P Karunaratne of Colombo or failing himMrs. D Wimalasundera of Colombo or failing herMr. P P Subasinghe of Colombo or failing himMr. G L H Premaratne of Colombo or failing himMr. S A B Rajapaksa of Colombo or failing himMr. T M Wijesinghe of Colombo

as *my/our Proxy to represent *me/us and to speak and vote for *me/us on *my/our behalf at the 31st ANNUAL GENERAL MEETING OF THE COMPANY to be held at Hotel Janaki, Fife Road, Colombo 5 at 12.15 p.m. on Thursday the 29th day of September 2011 and at any adjournment thereof, and at every poll which may be taken in consequence thereof.

1) To receive and consider the Annual Report of the Board of Directors, Statements of Accounts and the Balance Sheet of the Company for the year ended 31st March 2011 together with the Report of the Auditors thereon.

2) To approve the interim dividend of Rs. 0/10 per share paid on 25th May 2010 as the final dividend for the year ended 31st March 2011.

3) To re-elect Mrs. D Wimalasundera who retires by rotation in terms of Article 24(6) of the Articles of Association, as a Director of the Company.

4) To re-elect Mr. G L H Premaratne who retires by rotation in terms of Article 24(6) of the Articles of Association, as a Director of the Company.

5) To re-elect Mr. S A B Rajapaksa who retires by rotation in terms of Article 24(6) of the Articles of Association, as a Director of the Company.

6) To appoint Auditors Messrs Ernst & Young and to authorize the Directors to fix their remuneration.

7) Special Business

I. To authorize the Directors to determine and make donations.

FOR AGAINST

Signed this…………… day of ………………………. Two Thousand and Eleven.

……………………*Signature/s

Note:1) *Please delete the inappropriate words.2) Instructions as to completion are noted on the reverse hereof.3) The shareholders / proxy holders are requested to bring their National Identity Card or

Passport when attending the meeting.

Instructions as to Completion


62

1. Kindly perfect the Form of Proxy after filling in legibly your full name and address and sign in the space provided. Please fill in the date of signature.

2. A Member entitled to attend and vote at the Meeting is entitled to appoint a Proxy who need not be a Member, to attend and vote instead of him. Please indicate with an “X” in the boxes provided how your Proxy is to vote on each resolution. If no indication is given, the Proxy in his discretion will vote as he thinks fit.

3. In the case of a Corporate Member, the Form of Proxy must be completed under its Common Seal, which should be affixed in the manner prescribed by the Articles of Association.

4. If the Form of Proxy is signed by an Attorney, the relevant Power of Attorney should also accompany the completed Form of Proxy, in the manner prescribed by the Articles of Association.

5. The completed Form of Proxy should be deposited at the Registered Office of the Company, No.181, Kirula Road, Colombo 5, not less than forty eight (48) hours before the time appointed for the holding of the Meeting.

Please provide the following details :

Shareholder’s N.I.C./ Passport/

Company Registration No.

Shareholder’s Folio No.

Number of shares held

Proxy Holder’s N.I.C. No.

(if not a Director)

With state-of-the-art technology,a highly professional staff and a profound vision,Asiri Hospitals take pride in being the largesthospital chain in Sri Lanka.

# 181, Kirula Road, Colombo 5, Sri Lanka.

Tel : +94 11 4524400 E-mail : [email protected]

Website : www.asiri.lk

Asiri Holdings

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